Ather Funding, Valuation & Shareholders Breakdown – 2024

Working Strategy of Ather Business Model (Ather Funding)

Developers of electric scooters have gained immense popularity as well as support from the public. The e-vehicles are some of the promising investments that will bring high ROI in the future. Why? Because they will become the new normal in the upcoming years. Founded in the year 2013, Ather funding has been in the limelight.

Working Strategy of Ather Business Model (Ather Funding)

All thanks to the Ather business model that raised the valuation of the company to Rs.6,059 crore ($739 billion).

Ather has raised a whopping amount of $341.7 million through 9 funding rounds. What are they? Who are the shareholders? As you curious to know? Stick to this article and you will get the answer.

Keep reading!

Funding and Shareholders Breakdown

Since Ather is a private entity. Therefore, it gets funds from investors. They are the pillars behind the humongous valuation of Ather. 

Let’s look at the funding rounds of Ather-

Venture Capitalists (Lead Investors)Funding AmountSeries of the Funding Rounds
Caladium Investments$48 million (Rs.400 crores)Series E (Oct 18, 2022)
InnoVen Capital$6 million (Rs.49.2 crore)Debt Financing (Sep 29, 2022)
(National Investment and Infrastructure Fund)
$128 million (Rs.1,049 crore)Series E (May 12, 2022)
Hero Moto Corp$51 million (Rs.420 crore)Series D (Jan 14, 2022)
Hero Moto Corp$11.2 million (Rs.91 crore)Series C (July 24, 2020)
Sachin Bansal$51 million (Rs.418 crore)Series C (May 28, 2019)
Hero Moto Corp$27 million (Rs.221 crore)Series B (Oct 27, 2017)
Tiger Global Management$12 million (Rs.98.4 crore)Series A (May 29, 2015)
Undisclosed$1 million (Rs.8.2 crore)Seed Round (Dec 3, 2014)
Venture Capitalists (Lead Investors) of Ather

That’s how Ather has raised $341.7 million over 9 funding rounds. Its latest funding round was held on Oct 18, 2022, from the Series E round. 

Currently, Ather valuation is Rs.6,059 crore ($739 billion). Unfortunately, the company hasn’t disclosed the percentage of shares owned by each shareholder in the current fiscal year.

Why is Ather Famous?

This company is famous for being one of the famous Indian startups fighting for climate change. And how does it combat climate change? By producing electric scooters as discussed in the introduction! Its flagship products are exclusively designed electric scooters, namely-

  • Ather 450X
  • Ather 450 Plus

Apart from a high speed of 80km/h, it comprises advanced lithium-ion batteries, fast charging capability, and other smart features. Such as navigation and statistics. 

Is Ather Profitable?

With a massive valuation, the question of profitability is inevitable. Why? You may ask. Because investors provide funds to the company only if it operates effectively and makes good profits. However, that’s not the case in the current market situation. 

Numerous startups are going through funding winters and making losses! But still, investors are patient enough to have a far-sighted vision. They believe that the company will make profits after it holds a dominant position in the market.

Is Ather stuck in the same situation?

Let’s find out by looking into its financials-

Revenue Breakdown

Ather earned a massive revenue worth Rs.408.5 crore in FY22. This is 5.1X higher than the revenue earned by it in the previous fiscal year. In FY21, it earned Rs.79.8 crores.

The primary sources of revenue are-

  • Electric Scooter Sales– In the current fiscal year it sold 23,408 units of electric scooter as compared to 5,523 units in FY21. Also, it expanded its retail stores and experience centers in 38 cities in India.
  • Interest income from fixed deposits– It earned Rs.5.4 crore in FY22.
  • Charging Infrastructure– They have monetized the charging infrastructure called “Ather Grid.” But the company hasn’t disclosed the amount earned from this revenue source.
  • Subscription Plans– Customers pay a monthly or annual fee for these plans, which contribute to the company’s revenue stream.

Thus, Ather’s revenue rose to Rs.408.5 crore in the fiscal year 2022.

Expenses Breakdown

The amount of money spent on expenditures determines whether the company will be profitable or at a loss. How? We will discuss it later. Before that, let’s look at the expenses of Ather-

ExpensesAmount Spend in FY22
Cost of materials consumedRs.391.6 crore
Employee benefit expensesRs.114.8 crore
Advertising and promotional expensesRs.45.5 crore
Finance CostRs.39.8 crore
Legal & Professional FeesRs.25.2 crore
Rent & utility billsRs.10.9 crore
Other operating and admin expensesRs.130.2 crore
Total Rs.758 crore
Ather: Expenses Breakdown

The total cost of expenditure in FY22 rose to Rs.758 crore as compared to Rs.321.6 crore in FY21.

Overall Financials of Ather

Ather Financials (FY22)Amount (in Crores)
Market ValuationRs.6,059 crores ($739 million)
RevenueRs.408.5 crore
ExpensesRs.758 crore 
Profit/LossLoss of Rs.344.1 crore
Overall Financials of Ather

The total expenses jumped to Rs.758 crore while the revenue was Rs.408.5 crore. Thus, Ather wasn’t profitable in FY22. It jumped into humongous losses of Rs.344.1 crore. 

Future Plans of Ather

As you have read, the existing investors of Ather funding include some giant venture capitalist companies. Such as Caladium Investments, InnoVen Capital, NIIF, Tiger Global Management, etc. Although the company drowned in huge losses due to its expenditures. But it sees them as potent investments that will aid in the expansion of their user base and revenue sources.

It focuses on manufacturing high-quality electric scooters by incorporating advanced technology. Its approach aims to accelerate the adoption of electric mobility in India and contribute to a more sustainable future.

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Published By: Supti Nandi
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