Ather Energy Scales Back IPO Size to $308M Amid Valuation Concerns

Ather Energy Trims IPO Target, Seeks $1.4B Valuation Amid Market Volatility

Ather Energy, the prominent Indian electric vehicle (EV) startup, has significantly reduced the size of its planned initial public offering (IPO) to $308 million, according to a recent TechCrunch report. This revised figure is a notable decrease from its initial aspirations, as the company now aims for a post-money valuation of $1.4 billion. This adjustment reflects the current market conditions and investor sentiment surrounding EV startups.

The IPO, managed by leading financial institutions including Goldman Sachs, JP Morgan, and Kotak, will consist of a fresh issue of shares. The funds raised are earmarked for investing in research and development, expanding manufacturing capacity, and bolstering its charging infrastructure network across India. Ather Energy had previously secured $128 million in a Series E funding round in 2023, led by existing investor Hero MotoCorp and Singapore’s GIC.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has emerged as a key player in India’s burgeoning EV market. The company designs and manufactures electric scooters and operates Ather Grid, a public charging network. Its flagship products, the Ather 450X and 450S, have gained traction among urban commuters seeking eco-friendly transportation options.

Despite its innovative products and growing market presence, Ather Energy faces stiff competition from established players like Ola Electric and TVS Motor Company, as well as a host of emerging EV startups. The Indian EV market is characterized by intense price competition and evolving consumer preferences.

The decision to reduce the IPO size comes at a time when several tech companies have either postponed or downsized their IPO plans due to market volatility and investor caution. The performance of recent EV IPOs globally has also influenced Ather Energy’s strategy.

Ather Energy’s valuation expectations have also been tempered, with the company now seeking a $1.4 billion post-money valuation. This is a more conservative estimate compared to earlier projections, reflecting a pragmatic approach to attracting investors in the current climate. The IPO’s success will depend on Ather Energy’s ability to convince investors of its long-term growth potential and its ability to navigate the competitive landscape.