IPO-bound Ather Energy opens new facility to boost R&D and testing capablity

Bengaluru: IPO-bound electric two-wheeler maker Ather Energy Ltd on Thursday announced the expansion of its research and development and testing capabilities with a third facility in Bengaluru.

Spread across 38,692 sq.ft., the facility is designed to validate durability and safety across vehicle, system, and component levels, including on-road endurance. It also houses dedicated labs for structural durability, battery testing, electrical and electronics reliability, and vehicle environment testing, the company said in a statement. 

In FY24, the company spent about ₹238 crore, or about 15% of its revenue from operations, in R&D. About 46% of Ather’s total workforce is dedicated to R&D.

Ather’s new facility has equipment for targeted testing of systems like suspension frames, enabling early bug detection, faster design optimization, and lower change costs. 

Beyond data-driven testing methods, the facility also conducts battery validation tests, including thermal performance tests, water wading tests, drop tests, and vibration and thermal cycling to tune the battery for performance and safety. 

Ather’s battery packs are tested under real-world load conditions, including temperature testing, mechanical drop testing, and extreme vibration testing, and are certified IPX7 waterproof and AIS 156 compliant, Ather said. 

“EVs are radically different from ICE vehicles and are a relatively new technology, so it is important to thoroughly test all the components of the vehicle,” Ather’s co-founder and chief technology officer Swapnil Jain said. “Our products go through rigorous tests that are designed around Indian riding conditions and extreme usage scenarios, reflecting how customers use our scooters.”

Ather has three R&D facilities in Bengaluru covering various functionalities such as design, development and testing of its electric two-wheelers, software for its scooters, charging infrastructure, and accessories. 

Ather’s IPO

Ather, which has the Ather 450 and Rizta lines of scooters, has proposed an initial public offering that will include a combination of a fresh issue of equity shares worth ₹3,100 crore and an offer for sale (OFS) of 22 million equity shares by promoters and investors shareholders, according to its draft red herring prospectus filed in September. 

The company, which is expected to go public later this year, will be the second electric vehicle maker in the country to list on the bourses. Ola Electric Mobility made its stock market debut in August. 

Ather plans to use the proceeds from the IPO’s fresh issue of equity for capital expenditure to establish an electric two-wheeler factory in Maharashtra, further investment in research and development, marketing initiatives, repayment of loan, and general corporate purposes.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather has two manufacturing plants in Hosur, Tamil Nadu, one each for vehicle assembly and battery manufacturing, and an upcoming manufacturing facility in Bidkin, Maharashtra. 

Also read | Will Ather’s fate be similar to Ola’s? Analysts are more cautious than optimistic.