EV Maker Keeps Funding Options Open As Revenue Surges And Losses Narrow
Electric two-wheeler manufacturer Ather Energy has approved plans to raise up to ₹2,500 crore through a combination of Qualified Institutional Placement (QIP), preferential allotments, rights issues, foreign currency convertible bonds (FCCBs), and other eligible securities, according to a stock exchange filing.
The move comes as the Bengaluru-based electric vehicle maker looks to strengthen its balance sheet and secure capital for future growth amid intensifying competition in India’s rapidly expanding EV market.
The company’s board has approved raising up to ₹1,500 crore through a QIP of equity shares in one or more tranches. In addition, it has cleared another ₹1,000 crore fundraise through equity shares, FCCBs, or other convertible securities using permissible routes such as preferential allotments and rights issues.
Ather Seeks Flexibility To Tap Multiple Investor Pools
Unlike a conventional fundraising plan that relies on a single route, Ather has opted to keep multiple capital-raising avenues open.
The strategy allows the company to access both domestic and international investors while retaining the flexibility to choose the most favorable funding option based on market conditions and investor demand.
To oversee the process, Ather has constituted a dedicated Fund Raise Committee, which will handle matters related to the proposed capital raise, including execution timelines and issuance details.
The company will seek shareholder approval for the QIP portion through a postal ballot, with additional details expected to be announced separately.
Fundraise Comes Amid Improving Financial Performance
The fundraising proposal arrives at a time when Ather is showing signs of operational improvement.
During the fourth quarter of FY26, the company reported a 74% year-on-year increase in operating revenue to ₹1,175 crore, compared to ₹676 crore in the corresponding quarter last year.
At the same time, Ather significantly reduced its losses, with net loss narrowing 57% to ₹100 crore.
The performance was driven by stronger electric scooter sales and improved operating leverage, with revenue growth outpacing the rise in expenses.
The results indicate that Ather is gradually moving toward greater financial discipline while continuing to invest in growth.
Competition In India’s EV Market Intensifies
Ather’s fundraising plans come as competition in the electric two-wheeler segment continues to heat up.
The company competes with players including Ola Electric, TVS Motor, Bajaj Auto, Hero MotoCorp, and several emerging EV startups for market share in one of the world’s fastest-growing electric mobility markets.
Earlier this month, rival Ola Electric raised ₹780 crore through a Qualified Institutional Placement. The issue was oversubscribed by 56% against its initial target of ₹500 crore, reflecting continued investor interest in India’s EV sector despite ongoing profitability challenges.
Industry experts believe access to capital will remain a critical differentiator as manufacturers continue investing in battery technology, charging infrastructure, retail expansion, and new product development.
Why The Fundraise Matters
For Ather, the proposed ₹2,500 crore raise provides an opportunity to accelerate growth while maintaining financial flexibility.
The company has been expanding its product portfolio with models such as the Ather Rizta and the Ather 450 series while growing its retail footprint and charging network across the country.
With EV adoption expected to rise significantly over the coming years, Ather appears to be positioning itself for the next phase of expansion by ensuring it has sufficient capital to support product innovation, manufacturing scale-up, and market expansion.
As competition intensifies and investors increasingly focus on sustainable growth, the success of Ather’s fundraising strategy could play a key role in shaping its long-term position within India’s electric mobility ecosystem.
