Hero MotoCorp Backed Ather Energy’s Loss Shoots Up 2.5X To INR 865 Cr In FY23

Bengaluru-based two-wheeler electric vehicle (EV) manufacturer Ather Energy’s net loss surged over 150% in the year ended March 31, 2023. The Hero MotoCorp-backed EV startup reported a loss of INR 864.5 Cr in the financial year 2022-23 (FY23) as against a loss of INR 344.1 Cr in FY22, despite a strong growth in its sales. 

Operating revenue ballooned 4.3X to INR 1,783.6 Cr in FY23 from INR 408.5 Cr in the previous fiscal year. Ather Energy’s operating revenue stood at INR 80 Cr in FY21. 

The startup generates a majority of its revenue from the sale of its escooters. Including other income, total revenue stood at INR 1,806.1 Cr during the year under review as against INR 408.5 Cr in the previous fiscal year. 

Meanwhile, total expenses more than tripled to INR 2,670.6 Cr from INR 757.9 Cr in FY22. 

Ather’s biggest expense was the cost of materials. It spent INR 1,655.7 Cr on materials in FY23, a 4.5X jump from INR 365.1 Cr in the previous fiscal year.

Employee benefit expenses rose 2.9X to INR 334.9 Cr from INR 113.9 Cr in FY22. Employee benefit expenses comprise employee salaries, PF contribution, gratuity, among others. 

Advertisement expenses more than quadrupled to INR 203.8 Cr in FY23 from INR 45.5 Cr in the previous fiscal year. 

On a unit economics basis, Ather spent INR 1.5 to earn every INR 1 from operations. EBITDA margin improved to -38.3% in FY23 from -61.7% in FY22. 

Earlier this month, Ather raised INR 900 Cr from its existing shareholders Hero MotoCorp and GIC through a rights issue. 

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather is a major player in the Indian two-wheeler EV market. It currently offers two escooters – Ather 450X and Ather 450S.

Ather also claims to have the largest fast-charging network in the country. The startup currently has over 116 experience centres across 92 cities. 

The startup competes with the likes of Ola Electric, Simple Energy, and TVS.