Focusing to scale up business sustainably, says Ather CEO Tarun Mehta

As the market is abuzz with initial public offering (IPO) plans of electric vehicle (EV) two-wheeler maker Ather Energy, chief executive officer (CEO) Tarun Mehta remained tight-lipped about the listing timelines. Amid EV players losing market share, Mehta stated that it is not possible to "time the market" and that Ather's focus remains on scaling its business sustainably.

 

Speaking on the sidelines of TiECon, Mehta stated that Ather's focus remains on scaling its business, as the company is bullish on expanding its market beyond South India, where it has traditionally been strong. The company’s latest scooter, the Rizta, is designed to cater to the preferences of non-South Indian consumers, particularly in the family segment. This is expected to drive retail expansion in northern and western India, with more dealerships being set up to cater to the growing demand.

 

“Ather has a disciplined approach to expansion, opening stores only where a viable business case exists,” Mehta stressed.

 

Bloomberg had reported recently that Ather is moving forward with plans for an IPO around end-March or early April that could raise $400 million. It could seek a pre-money valuation of around $1.2 billion, or about $1.6 billion after taking into account the IPO proceeds, reports claimed.

 

Ather is also expanding its fast-charging network, Ather Grid, which currently consists of 3,000-3,500 fast chargers across the country. The company has been aggressively adding new charging stations, with 1,500 deployed in the past year alone.

 

To facilitate industry collaboration, Ather has also open-sourced its charging connector standard, now recognised by the Bureau of Indian Standards (BIS). This move allows other electric two-wheeler makers to adopt the same standard and access Ather’s charging infrastructure without additional onboarding fees. Mehta envisions a future where any compatible charger can be utilised by any electric vehicle, akin to the universality of USB-C.

 

Profitability remains a key focus for Ather, with Mehta highlighting the importance of strong unit economics rather than pursuing hyper-growth at the cost of margins. Unlike other startups that rely on deep discounting strategies, Ather has maintained stable pricing to ensure long-term sustainability. The company has earmarked around Rs 1,000 crore for investments, including a new manufacturing facility.

 

While Mehta refrained from discussing the IPO specifics, Bloomberg recently reported that Ather is moving forward with its public listing plans and aims to raise approximately $400 million by April. The company could seek a pre-money valuation of around $1.2 billion, or about $1.6 billion post-IPO.