EV Company Ather Energy losses surged by 2.5 times to INR 865 crore in FY23

Ather Energy, which is backed by Hero MotoCorp, GIC, Sachin Bansal, NIIF, and Tiger Global was founded by IIT Madras alumni Swapnil Jain and Mehta in 2013.

Published On: 25/09/23
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Despite the Ather’s operations grew 4.3 times and reached INR 1,784 in March ending, the firm still swelled up to a huge loss.
Ather Energy loss surged by 2.5 times which is backed by Hero MotoCorp among other crucial players.

Ather Energy, an electric vehicle (EV) startup funded by Hero MotoCorp, experienced a more than 2.5 times Ather Energy losses in the fiscal year 2022–23. In accordance to its annual financial records submitted to the Registrar of Companies (RoC), the EV startup disclosed a loss of INR 864.5 crore in FY23 compared to INR 344.1 crore in FY22. Despite having excellent sales, Ather's total expenditure tripled to INR 2,670.6 crore from INR 757.9 crore in FY22.

Even though the company's revenue from operations increased 4.3 times during the financial year ending in March 2023 reaching a total of INR 1,784 crore, losses continued to rise. In FY23, the company spent 1.5 times as much as it made from operations, while the EBITDA margin increased to 38.3%, according to reports. Through a rights sale earlier this month, the electric car company received INR 900 crore from its current owners Hero MotoCorp and the major international investment bank GIC.

According to Ather, it intends to utilize the money to expand its retail network and charging infrastructure as well as to introduce new products. "The past few years have shown how quickly India can make the switch to EVs and how 2 wheelers will be at the forefront of this shift. The expansion of our footprint will be made possible by this round, according to Tarun Mehta, CEO and Co-Founder of Ather Energy.

Ather Energy currently operates more than 200 retail touchpoints spread over more than 100 cities, as well as an open-access fast-charging network with more than 1,500 Ather Grids for electric two-wheelers.

In order to target a wider portion of the two-wheeler industry, Ather recently expanded its product lineup with 2.9 kWh and 3.7 kWh battery choices in the flagship 450X as well as an entry-level model, the 450S. Mehta and Swapnil Jain, graduates of IIT Madras, founded Ather in 2013. Hero MotoCorp, GIC, NIIF, Sachin Bansal, and Tiger Global are the company's backers.