Electric Scooter Maker Keeps Multiple Funding Options Open To Support Growth
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 fundraising plan comes as the Bengaluru-based company looks to strengthen its financial position and secure capital for future expansion in India’s increasingly competitive electric vehicle market.
According to the filing, Ather’s board has approved raising up to ₹1,500 crore through a QIP of equity shares in one or more tranches. The company has also cleared an additional ₹1,000 crore fundraising programme through equity shares, FCCBs, or other convertible securities using routes such as preferential allotments and rights issues.
Company Creates Dedicated Fund Raise Committee
To oversee the fundraising process, Ather has constituted a dedicated Fund Raise Committee that will manage all matters related to the proposed capital raise.
The company said shareholder approval will be sought for the QIP component through a postal ballot. Additional details regarding the issue structure, pricing, investor participation, and timelines will be announced at a later stage.
By keeping multiple fundraising routes available, Ather gains the flexibility to tap both domestic and international capital pools depending on market conditions and investor appetite.
Industry experts note that such flexibility can be particularly valuable in volatile market environments, allowing companies to optimise their fundraising strategy based on prevailing valuations and demand.
Fundraise Comes As Financial Performance Improves
The proposed capital raise follows a period of improving financial performance for the EV manufacturer.
In the fourth quarter of FY26, Ather reported operating revenue of ₹1,175 crore, representing a 74% year-on-year increase from ₹676 crore in the corresponding quarter last year.
The company also significantly reduced losses during the period. Net loss narrowed 57% to ₹100 crore, reflecting stronger sales growth and improving operational efficiency.
Higher electric scooter volumes contributed to the performance, with revenue growth outpacing the rise in expenses.
The results indicate that Ather is gradually moving closer toward sustainable growth while continuing to invest in product development, distribution expansion, and technology upgrades.
Race For Capital Intensifies In India’s EV Sector
Ather’s fundraising plans come at a time when electric vehicle companies are increasingly turning to capital markets to fund expansion.
Earlier this month, rival Ola Electric raised ₹780 crore through a Qualified Institutional Placement. The issue attracted strong investor demand and was oversubscribed by 56% against its initial target of ₹500 crore.
The parallel fundraising efforts highlight the growing capital requirements of India’s EV sector as companies compete to expand manufacturing capacity, strengthen supply chains, launch new products, and grow charging infrastructure.
While EV adoption continues to accelerate across India, companies are also facing intense competition from established automakers and emerging startups seeking a share of the rapidly growing market.
Why The Fundraise Matters
The proposed ₹2,500 crore raise could provide Ather with significant financial flexibility as it enters its next phase of growth.
The company has steadily expanded its presence in India’s electric two-wheeler segment through products such as the Ather 450 series and Rizta. It has also invested heavily in charging infrastructure, software capabilities, and retail expansion.
With India’s EV market expected to witness sustained growth over the coming years, access to capital will remain critical for companies looking to scale operations and maintain competitive advantages.
For investors, Ather’s fundraising approval signals management’s confidence in the company’s growth prospects and its intention to remain aggressive in a rapidly evolving electric mobility landscape.
