Company Overview
Ather Energy, founded in 2013, is an Indian electric vehicle company specializing in electric two-wheelers. With innovation at its core, Ather has quickly emerged as one of the most prominent players in India’s electric mobility space. The company aims to reshape the transportation landscape with its advanced electric scooters that offer high performance, intelligent features, and a focus on sustainability.
- Company Name: Ather Energy Pvt. Ltd.
- Founded: 2013
- Founders: Tarun Mehta, Swapnil Jain
- Headquarters: Bengaluru, India
- Valuation: $1.3 billion (as of August 2024)
- Latest Funding: $71 million (Series E, August 2024)
- Main Products: Ather 450X, Ather 450S
Vision and Mission
Vision:
Ather Energy’s vision is to accelerate the transition to sustainable energy by offering electric vehicles that are high-performing, intelligent, and eco-friendly.
Mission:
To design and manufacture world-class electric vehicles that empower individuals to contribute to a cleaner, greener planet. Ather strives to provide seamless electric mobility with cutting-edge technology and a robust infrastructure.
The Founders: Tarun Mehta and Swapnil Jain
Tarun Mehta and Swapnil Jain, both IIT Madras alumni, are the dynamic duo behind Ather Energy. Their entrepreneurial journey began with a shared passion for clean energy and innovation. In 2012, Tarun Mehta left his job at Ashok Leyland to focus on improving battery technology. This led to the idea of developing an entire electric vehicle from scratch. By 2013, Tarun and Swapnil had officially launched Ather Energy with a bold vision to disrupt India’s traditional two-wheeler market.
Ather’s Unicorn Status
In August 2024, Ather Energy achieved unicorn status, joining the elite list of startups valued at over $1 billion. The company secured $71 million in funding from the National Investment and Infrastructure Fund (NIIF), bringing its valuation to $1.3 billion. Key investors such as Hero MotoCorp and Flipkart founders Sachin and Binny Bansal played an instrumental role in Ather’s journey to unicorn status. This achievement came 11 years after the company’s founding, marking a milestone in its growth trajectory.
Problem Statement
India’s two-wheeler market has traditionally relied on petrol-powered vehicles, significantly contributing to air pollution. Ather identified key challenges that hindered the adoption of electric vehicles (EVs):
- High Costs: The high price of electric vehicles compared to traditional petrol bikes.
- Consumer Skepticism: The perception that electric scooters are underpowered and less reliable.
- Lack of Infrastructure: The absence of a widespread EV charging network.
Ather’s goal was to address these issues by developing high-performance electric scooters and creating a robust charging infrastructure to support their widespread adoption.
Ather Energy’s Key Solutions
Ather Energy has innovatively addressed several challenges in the electric vehicle market:
- High Cost of EVs
One of the major barriers to EV adoption is the high cost compared to traditional petrol vehicles. Ather Energy tackled this challenge by focusing on the localization of components. With over 90% of its manufacturing localized in India, Ather has significantly reduced its reliance on imported parts, thus lowering costs. Additionally, Ather introduced more affordable models like the Ather 450S to cater to a wider audience, making EVs accessible to customers from various income groups. - Consumer Skepticism About Performance
A major concern for consumers has been the performance of electric scooters. Ather has taken this challenge head-on with its high-performance models, such as the Ather 450X. The scooter’s Brushless DC motor ensures superior acceleration, with the Ather 450X accelerating from 0 to 40 km/h in just 3.3 seconds. This performance is on par with traditional petrol scooters, proving that electric vehicles do not have to compromise on power. - Charging Infrastructure
Another key barrier to EV adoption is the lack of charging stations. Ather Energy is addressing this issue with its proprietary Ather Grid – a network of fast-charging stations across India. These stations allow users to charge their scooters quickly (up to 80% in 50 minutes), solving the problem of long charging times. The Ather Grid is rapidly expanding, making electric mobility more feasible in urban areas.
Ather Energy’s Products and Services
Ather Energy’s flagship products, the Ather 450X and Ather 450S, are high-performance electric scooters designed for the urban commuter. These scooters are equipped with advanced features such as:
- Smart Dashboard: Provides real-time data about the scooter’s performance, route navigation, music controls, and diagnostics.
- Fast Charging: The scooters can be charged quickly, ensuring users are ready to go in no time.
- Range: The Ather 450X offers a range of 146 km on a single charge, while the Ather 450S offers a range of 108 km, making it an affordable option for shorter commutes.
Ather’s ecosystem extends beyond the scooters themselves. The Ather Grid is a rapidly expanding network of fast-charging stations that ensures users can conveniently charge their vehicles across urban India.
- Model Overview:
- Ather 450X: ₹1.3–₹1.7 lakh (146 km range, fast charging, smart dashboard)
- Ather 450S: ₹1.1 lakh (108 km range, affordable alternative)
Market Segment and Target Audience
Ather Energy primarily targets urban millennials and young professionals who are looking for an eco-friendly and high-performance alternative to petrol-powered vehicles. The company’s main focus is on Tier 1 cities such as Bengaluru, Delhi, and Mumbai, where there is significant demand for electric two-wheelers due to concerns about air pollution and traffic congestion.
Secondary Market:
As the Indian government pushes for broader EV adoption, Ather is also eyeing Tier 2 cities where the demand for electric vehicles is gradually increasing.
Market Size and Growth:
India’s electric two-wheeler market is poised to grow at a compound annual growth rate (CAGR) of 40% by 2028. Currently, Ather has a 9% market share, with Ola Electric leading the segment.
Ather Energy’s Unique Selling Proposition (USP)
Ather differentiates itself through a combination of premium technology, innovative design, and a customer-centric approach. The key aspects that make Ather stand out in the EV market include:
- Smart Features: Integration of connected dashboards, onboard diagnostics, and Over-the-Air (OTA) updates.
- Performance: Ather’s focus on speed, torque, and range ensures that its scooters perform at a level comparable to traditional petrol scooters.
- Charging Infrastructure: The Ather Grid network provides a reliable and convenient way for users to charge their scooters across India.
Competitors
Ather Energy faces stiff competition in the Indian EV market from several major players:
- Ola Electric (41% market share): Flagship model – Ola S1 Pro
- TVS Electric (19% market share): Flagship model – TVS iQube
- Bajaj Chetak Electric (18% market share): Flagship model – Bajaj Chetak Electric
Despite having a 12% market share, Ather Energy is well-positioned to compete due to its strong product offerings and robust charging infrastructure.
Conclusion
Ather Energy’s rapid rise to unicorn status is a testament to its innovative approach to electric mobility. By addressing the key barriers to EV adoption—high costs, consumer skepticism about performance, and the lack of charging infrastructure—Ather has positioned itself as a leader in India’s electric two-wheeler market. With its focus on cutting-edge technology, superior performance, and customer experience, Ather Energy is well-poised to lead the transition to sustainable transportation in India.
As Ather prepares for further growth, including an IPO and expanded product offerings, it will continue to play a key role in India’s electric vehicle revolution.
