Ather Becomes India’s Latest Unicorn, Now Valued At $1.3 Billion
Introduction
Ather Energy has recently become India’s latest unicorn, marking a significant achievement in the country’s electric vehicle (EV) industry. With a $71 million (Rs 600 crore) funding round led by the National Investment and Infrastructure Fund (NIIF), Ather Energy’s valuation has surged to $1.3 billion (Rs 10,900 crore). This achievement places Ather Energy in the same league as other major players in India’s electric scooter market, such as Ola Electric, TVS, and Bajaj Auto. This blog will explore Ather’s journey from a startup to a unicorn and how it stands out in the competitive EV landscape.
Ather Energy: A Vision for Electric Mobility
IIT Madras graduates Tarun Mehta and Swapnil Jain founded Ather Energy in 2013. The duo started the company with a vision to create electric vehicles that would revolutionize urban mobility in India. Their journey began with the idea to build a smart and efficient electric scooter that could cater to the needs of the modern Indian commuter. Ather Energy, right from its inception, aimed to develop high-quality electric scooters that would offer a seamless blend of technology, design, and performance.
Backing and Support
In the early stages, Ather Energy attracted significant attention from investors. Flipkart co-founder Sachin Bansal provided crucial support to the Startup while backing them up at early stage. In 2015, Ather secured investment from Tiger Global, a global venture capital firm known for backing innovative startups. In 2016, Hero MotoCorp, one of India’s largest two-wheeler manufacturers, invested in Ather, further solidifying its position in the industry. Hero MotoCorp’s involvement not only provided financial backing but also lent credibility to Ather’s vision of transforming urban mobility.
The Launch of Ather’s Electric Scooters
Ather Energy launched its first electric scooters, the Ather 340 and Ather 450, in 2018. These scooters were designed to cater to the growing demand for eco-friendly and efficient urban transportation. The Ather 450, in particular, gained popularity due to its advanced features and smart technology. The scooter came equipped with a touchscreen dashboard, onboard navigation, and over-the-air updates, setting a new standard in the Indian scooter market.
Ather’s focus on technology and performance helped it carve a niche in the premium electric scooter segment. However, the scooters were priced above Rs 1 lakh, making them a premium offering in a market that is traditionally price-sensitive. Despite the higher price point, Ather managed to build a loyal customer base who appreciated the quality and innovation that the brand offered.
Ather Energy vs. Ola Electric: A Competitive Landscape
Ather Energy’s journey in the EV industry has not been without challenges. The entry of Ola Electric in 2017 added a new dimension to the competitive landscape. Ola Electric, founded by Bhavish Aggarwal, quickly gained attention with its aggressive marketing strategies and bold ambitions. Ola’s electric scooters, launched in 2021, were accompanied by a massive media blitz, which included launch events, advertisements, and promotional videos. This approach helped Ola Electric capture a significant share of the market, and its valuation soared to $5 billion even before its scooters hit the market.
Ather Energy, on the other hand, took a more measured approach. While Ola Electric focused on mass-market appeal, Ather continued to emphasize quality, technology, and customer experience. This difference in strategy created a competitive but dynamic environment in India’s electric scooter market. Despite facing stiff competition, Ather Energy has remained focused on its vision and continued to innovate.
The Road to Unicorn Status
Ather Energy’s recent funding round, which valued the company at $1.3 billion, is a testament to its sustained growth and potential. The $71 million investment from NIIF will enable Ather to scale its operations, expand its manufacturing capabilities, and introduce new products to the market. Ather’s steady growth and commitment to innovation have played a crucial role in its journey to becoming a unicorn.
In 2023, Ather Energy launched its latest electric scooter, the Ather Rizta. This new model is aimed at the family segment, allowing Ather to reach a broader customer base.
The Future of Ather Energy and India’s EV Market
Ather is well-placed to play a leading role in India’s EV revolution. With government policies increasingly favoring electric vehicles, Ather stands to benefit from various incentives and subsidies. The company’s focus on technology, innovation, and customer satisfaction will be key to its continued success.
The company’s revenue has also been growing steadily, highlighting its potential for future growth. There are some challenges like the need for continued investment and competition from other players, Ather’s future looks promising.
Conclusion
To conclude Ather’s recent funding round, which pushed its valuation to $1.3 billion, is a significant milestone in its growth story.
Ather Energy has the potential to become a dominant player in the global electric vehicle market.
References:
- YourStory
- Economic Times
- Tracxn Data
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