The electric vehicle (EV) firm Ather Energy, supported by Hero MotoCorp, saw its losses multiply by over 2.5 times in the financial year 2022-23.
EV startup Ather Energy disclosed a loss of INR 864.5 crore for FY23, in contrast to a loss of INR 344.1 crore in FY22, as revealed in their annual financial statements with the Registrar of Companies (RoC). Although Ather witnessed robust sales, their total expenditures surged to INR 2,670.6 crore in FY23 from INR 757.9 crore in FY22. This occurred even as their operational revenue significantly increased, growing 4.3 times to touch INR 1,784 crore in the year ending March 2023.
For every INR 1 they earned from operations during FY23, the company reported an expense of INR 1.5. Nevertheless, there was a noted improvement in their EBITDA margin, which stood at -38.3%.
Earlier in the month, Ather raised INR 900 crore in a rights issue with contributions from existing stakeholders, including Hero MotoCorp and the global investment firm, GIC. The company intends to allocate these funds towards launching new products, enhancing its charging infrastructure, and broadening its retail presence.
Highlighting the swift transition towards EV in India, Tarun Mehta, Ather Energy’s CEO and Co-founder, feels that the recent years showcase the rapid pace of EV adoption in India, with two-wheelers leading the charge. This funding will aid in expanding both their product range and presence.
The company boasts over 200 retail touchpoints spread across 100+ cities and has established a public fast-charging system, Ather Grid, with over 1,500 units. Ather has recently broadened its product range, introducing 2.9 kWh and 3.7 kWh battery options for its flagship model, the 450X, and a new entry-level variant, the 450S, targeting a larger segment of the two-wheeler market.
Established in 2013 by Mehta and Swapnil Jain, IIT Madras graduates, Ather has garnered support from prominent backers such as Hero MotoCorp, GIC, NIIF, Sachin Bansal, and Tiger Global.
