What an IPO signals about Ather's battle against Ola Electric
Subscribe to enjoy similar stories. A month after Ola Electric was listed in the public market, its older but smaller rival Ather Energies also filed its draft red herring prospectus (DRHP) for an initial public offering (IPO). Founded in 2013, Ather Energies has seen Ola Electric, four years its junior, overtake it in sales in the past few years.
Before its IPO, Ola Electric had raised $1 billion in 14 rounds, whereas Ather raised $502 million from 19 rounds, according to Tracxn. This reflects their contrasting paths. But Ather's decision to go for an IPO and its run-up are strong indicators that it's shifting gears.
Ola Electric's aggressive pursuit of scale is reflected in the two companies’ incomes. While Ather was ahead in income from operations in 2021-22, Ola’s revenue swelled to three times Ather’s in 2023-24, according to numbers in the DRHP. While Ather's revenue shrank, Ola Electric's jumped by over 90%.
The latest vehicle registrations data from the Centre’s Vahan database also reflects this gap. While Ola sold 297,789 vehicles from April to August, Ather sold 73,497. Between Ola and Ather, there are TVS Motor and Bajaj, two traditional players betting on electric vehicles, in an increasingly competitive market.
Ather's relationship with traditional players is more complicated, thanks to investments by two-wheeler major Hero MotoCorp. With 30%, Hero MotoCorp is the largest shareholder in the company. Even operationally, the two companies entered into a partnership last year to share an inter-operable fast-charging network across the country.
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