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Tag: ather

  • Ather Energy Business Model | How Ather Makes Money

    Established in 2013 and based out of Bengaluru, Ather Energy now plays a major role in the Indian electric two-wheeler market. It is well established for its high-performance electric scooters like the Ather 450 Apex, 450X Pro, and Rizta. The technology has made remarkable feats with remote connectivity, including a touchscreen dashboard, predictive maintenance, and real-time connectivity via IoT sensors. Besides, it also enables over-the-air software updates and route optimization through cloud computing, and above all, enhances the overall user experience. 

    The company has built a network of Ather Grid with over 1,000 fast charging points across 80 cities, which includes home charging solutions for Ather and other EVs for the use of customers. Ather reported a net loss of INR 1,059 crore in FY24, although revenues stand at INR 1,754 crore and filed for a INR 4,500 crore IPO. Funded by Hero MotoCorp, NIIF, and GIC, Ather has advanced the modeling of smart, connected, and sustainable mobility in India.

    About Ather Energy
    Ather Energy Business Model
    How Ather Energy Makes Money I Revenue Model of Ather Energy
    Ather Energy Unique Selling Proposition
    Ather Energy SWOT Analysis

    About Ather Energy

    This company came into being in April of 2013 with Tarun Mehta and Swapnil Jain, alumni of IIT Madras. Initially, their focus was battery technology, which was soon transitioned into what became India’s very first smart electric scooter(EV). Indeed, very early support, including time spent at the IIT Madras incubation cell and seed funding by the Technology Development Board and angel investor Srini V Srinivasan, really netted Ather with good traction. In 2014, the company landed a breakthrough investment of $1 million from Flipkart founders Sachin and Binny Bansal, shortly followed by a $12 million infusion from Tiger Global in 2015. Ather’s prototype, the S340, released in 2016, came with a touchscreen dashboard among other connected features, and it raised the bar concerning what an electric scooter in India could offer. In 2018, they commercially launched the Ather 450, and it became the fastest electric scooter in India.

    Hero MotoCorp made its strategic investment in Ather in 2016, and a full-fledged manufacturing facility in Hosur will be operational by 2021. Ather went on to scale rapidly by manufacturing well over 100,000 scooters by early 2023. In addition to this, it had added new offerings to its product portfolio, expansion of the Ather Grid network, and international operations in Nepal that began in 2023. Ather’s first IPO in 2025 was a landmark occasion for the company.

    Tarun Mehta: Driving India’s EV Revolution | Biography | Education | Controversies
    Tarun Mehta, co-founder and CEO of Ather Energy, is a visionary entrepreneur revolutionizing India’s EV industry. Explore about Tarun Mehta’s early life, education, controversies, and more.
    StartupTalkySakshi Jadhav

    Ather Energy Business Model

    Ather Energy intends to promulgate a business model around selling premium and tech-enabled electric scooters, while serving the Indian EV ecosystem broadly. Direct-to-consumer sales are an alternative way for Ather to bypass the traditional dealership network and allow for better control of prices, quality of customer service. Its scooters, such as the Ather 450X, are meant to exemplify high-powered, feature-filled products with smart dashboards, custom ride modes, and OTA updates for their urban and tech-savvy clientele. The company opts to keep things asset-light by outsourcing battery cell production and sharing partnerships for experience centers and service operations, all advantages for agility and faster adoption of new tech.

    The heart of Ather’s strategy is the development of the ecosystem. It has set up Ather Grid—a proprietary charging network that is open to other EVs—to build convenience and infrastructure. Atherstack is their in-house software platform that enables connected services, digital upgrades, and customer engagement. With an intense focus on in-house R&D, sustainability, and brand innovativeness, Ather positions itself as a leader in clean mobility, keeping long-term value at the forefront rather than swimming with the current industry model.

    Ather Story: Founders | Business Model | Logo | Tagline
    Ather Energy is a startup focused on designing and selling premium electric two-wheelers for the Indian market. It is founded by Tarun Mehta and Swapnil Jain. Know more about its business model, owners, success story, logo, history, competitors, origin country, and more.
    StartupTalkySarika Anand

    How Ather Energy Makes Money I Revenue Model of Ather Energy

    Ather Energy revenue sources comprise:

    Electric Scooter Sales

    The main revenue stream accounts for about 90% of total revenue. The main contributing models here are the Ather 450X, 450S, and 450 Apex, with 65-plus percent sales being of the 450X variants.

    Vehicle Accessories and Stock-in-Trade

    Another 3% of revenue comes from accessories and associated products.

    Services

    This covers after-sales servicing, maintenance, connected services, and so on, contributing 7% to total revenue.

    Charging Fees (Ather Grid)

    Users are charged for fast charging using subscription or pay-per-use price plans at the Ather Grid network. Usually, charging fees are INR 15–20 a session or INR 1 a minute, with a few free sessions for subscribers. This is a small but growing source of revenue.

    Other Operating Revenue

    A handful of other minor sources, about 0.2%.

    FY24 Financials

    Total Revenue from Operations (FY24): INR 1,754 crore

    Net Loss (FY24): Over INR 1,000 crore.

    Market Share: Some 11.5% in the Indian electric two-wheeler market.

    Vehicle sales are the core revenue generator for Ather, with smaller, growing shares from accessories, services, and charging infrastructure. High topline revenues mask Ather’s heavy losses due to cost competition.

    Ather Energy Unique Selling Proposition

    The key differentiator that Ather Energy offers is a perfect blend of the latest technologies, top-notch performance, and a complete electric ecosystem for vehicles. Hence, its smart scooters, like the Ather 450X and 450 Plus, come with features such as digital dashboards, over-the-air software updates, real-time diagnostics, and mobile app integration—turning the scooters into super-high-tech “gadgets on wheels.” Not just these, such scooters give excellent acceleration, good range, and reliability equivalent to that of petrol counterparts. Ather is different due to its charging network-Ather Grid, among India’s few such sets, providing owners with comfortable and often free fast charging options, besides allowing monetization from other EV users.

    The other aspect of customer experience control that Ather adopts is a direct-to-consumer model sales from purchase until after-sales. The company also has a recurring revenue source in subscriptions to services like maintenance, software upgrades, and roadside assistance. Their sustainability, innovation, and customer-first ideology of providing a highly customizable ride profile and proactivity in providing support suit the environmentally conscious, tech-savvy, metropolitan individuals. Well, it leads to this holistic approach that makes it the leading player in the fast-evolving electric mobility landscape of India.

    Ather Energy SWOT Analysis

    Ather SWOT Analysis
    Ather SWOT Analysis

    Strengths

    • Product Innovation: The electric scooters from Ather have become known for their advanced technology, smart features like digital dashboards, OTA updates, and high-end design.
    • Brand Presence and Investor backing: Backed by Hero MotorCorp and NIIF.
    • In-house Manufacturing: In-house manufacturing fuels controls their quality and innovation.
    • Charging Network Expansion: This provides customers with seamless access to charging stations.
    • Commitment towards Sustainability: The Brand positions itself as eco-friendly, which connects very well with environment-conscious consumers.

    Weaknesses

    • Premium Pricing: More targeted towards the premium segment, which makes it expensive for the masses.
    • Limited to Urban Areas: Currently restricted to top-tier cities rather than rural areas.
    • Reliance on Imported Components: Dependence on imports for various raw material components, like batteries.
    • Under Utilisation of Capacity: Low utilisation of manufacturing hampers capital efficiency and return on investment.

    Opportunities

    • Growth in the EV Space: Awareness among consumers and government incentives are further expanding this space.
    • In-house Battery Production:  This can provide a strong moat over the supply chain.
    • Expansion in the Product Line: Launching more products and penetrating the mass markets.
    • International Footprints: As the Indian market saturates, Ather can gradually focus on International Markets.
    • Collaborations: Partnerships with OEMs, tech firms, or charging networks can accelerate growth.

    Threats

    • Strong Competition: Competition from Ola Electric, TVS, Bajaj Auto, and Hero Motorcorp.
    • Regulatory Roadblocks: Changes in policies and regulations about EVs can pose a threat.
    • Fluctuations in the Raw Materials: Changes in the prices of lithium and semiconductors can slow the growth

    What distinguishes Ather Energy’s offerings is the combination of best-in-class technology, serious performance, and a complete ecosystem around electric vehicles. Their smart scooters—Ather 450X and 450 Plus—have digital dashboards, over-the-air updates, real-time diagnostic capabilities, and mobile app integration that amounts to the creation of high-tech “gadgets on wheels.” Besides, the scooters boast impressive acceleration, a good ride range, and a reliability level equal to petrol-based scooters. Another notable feature setting Ather apart is the company-run Ather Grid, one of the charging networks in India, where fast charging is provided at times conveniently and free of cost for the owners while monetizing from the other EV users.

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    To help save the environment many sustainable startups are emerging. The top sustainable startups in India include Phool, Ather Energy, BluSmart, etc.
    StartupTalkyAbinaya Arangarajan

    FAQs

    What is Ather Energy?

    Ather Energy is a startup focused on designing and selling premium electric two-wheeler vehicles for the Indian market. It is one of the best electric scooter startups in India.

    Who are Ather Energy owners?

    Tarun Mehta and Swapnil Jain founded the Indian electric vehicle company Ather Energy in 2013.

    What is the headquarters location of Ather Energy?

    Ather Energy is an Indian electric vehicle company headquartered in Bengaluru.

  • Bounce vs Ola Electric Scooter: Who Will Win the War?

    The world is evolving at a fast pace, right from climate change to pollution and everything in between — things are moving fast towards a more sustainable and economical future that is built upon the grounds of frugal innovation and so is India’s push towards sustainable use of resources and development.

    The EV industry is on the verge of major leaps forward and this is when Ola & Bounce, two of the promising names in the sector are up for a ‘neck-to-neck’ tussle to the top. But who would actually be able to have the upper hand in building the future of automotive? Let’s find out.

    Ola Electric — The Founder’s Ambitious Dream Ft. Mark Zuckerberg

    No click baits. Bhavish Aggarwal & Mark Zuckerberg may be the two immensely popular CEOs with completely different products in two distant time zones, but they still have a striking similarity i.e., putting in their everything for a vision they have for themselves and the company.

    What Mark Zuckerberg is doing with Meta is something that all of us already know, and Bhavish too — seems to be in that zone, where he thinks and believes that Ola’s future lies in the automotive sector and that is what the company wants to be known for, and not just another cab-hailing company.

    In fact, when Ola Electric began in 2019 — many perceived it as a side gig for the cab-hailing unicorn, but the recent developments have pivoted Ola Electric as Ola’s flagship product.

    From Urban Mobility to Everything Electric: Decoding the Functioning of Ola and the EV Dream

    Ola Electric Tweet
    Ola Electric Tweet

    Ola, which was among the first movers to launch last-mile mobility solutions in the country, grabbed eyeballs for all the right reasons. A track record where they were able to keep Uber on check to establish a duopoly in the last mile mobility landscape.

    Thus, it was no surprise when the company announced its plans to expand into other verticals, but things changed. Out of all the categories, Bhavish and team vesting into the EV sector and that too with an in-house production unit came as a surprise to many.

    But then, the reveal and the marketing on top of it successfully created that much-needed buzz in the automotive industry and among EV enthusiasts, who were eagerly waiting to discover what lay ahead.

    Ola launched the S1 and the S1 Pro — two of their flagship electric two-wheelers that could cover the maximum distance of 180+ km on a single charge, a debatable claim that felt hard to achieve in real life. They were priced at a premium, significantly more than what their competition was charging for their EVs.

    Ola was clear about its stance, and that was to position its offerings on the basis of quality and not price. With an exclusive invite-only system, Ola aimed at gaining enough momentum and buzz before a full-fledged launch.

    However, the move didn’t reap enough rewards for the aggregator and it was more of a hit-and-miss.  What followed was a pivot in the way the company went about its marketing endeavors. Ola went in with the pre-booking strategy, where users could book the vehicles for a token amount of ₹499, paying ₹20,000 on confirmation and the remaining at the time of delivery.

    The small token for pre-booking went well with the customers, as they were a bit overwhelmed with the considerable price tag for the vehicle, despite all the features it comes with.

    Reduce the premium price tag, that Ola deemed as ‘affordable’ and the company had cracked the code for a winning product that could redefine the company mission and scale in the times to come.

    However, as we already mentioned — the high penetrating price was going to be an issue not because the price was too high — but because of the skeptical nature of the average Indian customer.

    The users have expressed concerns about the EV industry overall, with a question mark upon the ability of EV manufacturers to get it right with their money and adhere to the safety norms.

    Enters Bounce — A Fresh Twist in the EV Saga

    First things first. Bounce was meant to be taken seriously, not because of the product but its sheer habit of solving complex problems differently, simplifying them for the end user.  

    Bounce started off as a bike sharing and self ‘PuDro’ mobility company Is known for this same appetite to solve mobility once and for all, by giving users the leverage to pick up and drop off their vehicle at the nearest bounce dockyards, at their own convenience.

    The team and the idea of ‘Bounce’ were already bagging positive reception and that is when the company announced its focus on EVs and teased its first entry-level vehicle ‘Infinity’ for the daily commuter.

    When a company that scaled to 100000 rides per day by just focusing on a couple of cities, announces something — we tend to get curious. Isn’t it? This was no different. Bounce’s announcement of the EV made one thing clear i.e V. Hallekere and the team have something cooking in their heads and the R & D labs.

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    Give Me the Liberty, and Take My Money — Understanding Bounce’s Strategy and the Indian Consumer

    Bounce Battery Swapping Strategy
    Bounce Battery Swapping Strategy

    The founders were aware that they were competing with someone like Ola and Ather who have the luxury of a vast distribution network. Competing with them on the distribution front may not be a good idea and Bounce’s pricing for their entry-level scooter further justified their understanding of the Indian market.

    Bounce’s entry-level scooter which is available at a price of ₹36,000 without the battery (apple folks crying in the corner) is about giving the liberty back to the customer, by giving them the option to pick what they want.

    Bounce’s swappable battery feature across the network made the cost of owning a two-wheeler EV significantly cheaper, and the Bengaluru-based company surely deserves some brownie points for the move.

    “The public transport in India is not like it is across the globe. For instance, there are 6,000 buses for over three million people in Bengaluru, alone. Public transport was thus overcrowded, and the number of people dependent on it was high. The biggest question is how you get these people to move,” Bounce’s Vivekananda H, Co-founder and CEO, tells YourStory.

    The Pain — The One Who Solves It Faster, Wins

    EV acceptance in India can’t be just dependent upon one or two companies. Rather, it has to be a combination of various factors, permutations, and combinations — and a lot of that has to do with the quality of the product and the price point.

    For Ola, the pre-orders became a curse as they have failed to deliver upon orders and promised features, something that they have assured to fix in future updates.

    The fire outbreaks in the vehicles, poorly built, and lack of safety — a lot of which is being deemed as the result of rushed manufacturing and cost cutting, can become deal breakers for customers who are looking to switch to a reliable EV.

    Ola Fire Incidents
    Ola Fire Incidents

    On the other hand, pricing and delivery are some of the major pain points that will determine the potential winner in the long run — as the price, distribution, and infrastructure still continue to be the biggest pain points when consumers look to switch to a new piece of technology.

    Where Ola sells the EVs through its own app, Bounce has tied up with the homegrown marketplace, Flipkart to sell its EVs and make them accessible to customers. With the rise in fuel costs, impending recession, layoffs, and escalating inflation — affordability has become the need of the hour for customers.

    However, this has also created chaos among the EV and OEM manufacturers as the ‘risk’ involved with the utility of a technology or an EV-like industry, await the tests of time and it is not something that the average Indian customer will be assured about, from day 01.

    How companies can actually win it, is via a systematic funnel right from marketing to after-sales support. When customers switch to something new, they aren’t buying the product or the functionality — they are buying the hope and the change that it promises.

    The graph shows the sales volume of electric two wheelers for the fiscal year 2016-2021
    The graph shows the sales volume of electric two wheelers for the fiscal year 2016-2021 

    Conclusion

    As they say, never judge the conclusion by the beginning — and rightly so, we feel that it is too early to decide upon a winner in the vastly interesting and highly competitive urban mobility landscape.

    Companies like Ather, Bounce & Ola are constantly pushing their limits and redefining the way India perceives EVs, but then it is too early to say anything. When you take that giant leap forward, there are chances that you will stumble here and there, and you may fall too — but that is what startups are all about.

    They’re not afraid to fall because they are not afraid to fail and that is what makes all the difference. Ola and Bounce are here to stay, but who’ll stay relevant in the long run? Well, that is the story for another ‘What if’!

    FAQs

    Who is the CEO of the Bounce?

    Vivekananda Hallekere is the CEO of Bounce.

    Which is the best EV scooter?

    Some of the best EV scooters are Nami Burn-E 2 Max Electric Scooter, Dualtron Thunder Best Premium Electric Scooter, Kaabo Mantis Pro Best Electric Scooter, etc.

    Do Bounce electric needs a license?

    As per ARAI, any electric bike traveling at more than 25 kmph with motor power exceeding 250W needs a license for its use. And under the same criteria, Bounce electric also requires a license as it can travel much faster than 25 kmph.

    Is Bounce an Indian company?

    Yes, Bounce is an Indian company based in Bangalore, Karnataka.