Ather Energy, an Indian electric scooter manufacturer backed by Hero MotoCorp, is moving ahead with its Mumbai IPO, aiming to raise $400 million. The IPO, expected by late March or early April, seeks a valuation of approximately $1.2 billion. The offering includes primary and secondary shares, with key investors offloading stakes. The move comes as India witnesses a decline in electric scooter sales.
Ather Energy Pvt., a leading Indian electric scooter manufacturer backed by Hero MotoCorp, is advancing its plans for an initial public offering (IPO) in Mumbai. The company aims to raise approximately $400 million, targeting a pre-money valuation of $1.2 billion.
The IPO, expected to be launched by late March or early April, will include both primary and secondary share sales. Founders Tarun Mehta and Swapnil Jain, along with key investors such as the National Investment and Infrastructure Fund Ltd. and Tiger Global Management’s Internet Fund III, are set to offload stakes. However, Hero MotoCorp, which holds a 37% stake in Ather, will not participate in the share sale.
Ather Energy, founded in 2013, was among the first companies in India to enter the electric two-wheeler market. Initially targeting premium customers, the company has expanded its reach amid increasing competition from Bajaj Auto, TVS Motor Co., and Ola Electric Mobility.
Market Challenges and Industry Trends
The IPO comes at a time when electric scooter sales in India are slowing down. According to data from the Federation of Automobile Dealers’ Association, two-wheeler sales in February declined by 8% year-on-year to 76,086 units. Despite this, Ather’s sales grew by 20% last year, while its competitor, Ola, saw a 52% increase in sales.
The Indian stock market has also been facing challenges, with the Sensex dropping by 5% this year and 14% from its September peak. Despite the slowdown, Mumbai’s IPO market has raised $2.25 billion so far in 2025, and Ather’s listing is expected to be a key addition.
Second Pure-Play EV IPO in India
Ather’s IPO follows Ola Electric Mobility’s market debut last year. Ola’s shares, which once reached a peak valuation of $7.7 billion, have dropped by 65%, currently valuing the company at approximately $2.6 billion.
As Ather prepares for its IPO, industry analysts are closely watching how the market reacts, especially with the current slowdown in electric vehicle sales. The success of the IPO could influence future EV investments in India.
