Ather Energy was founded by IIT Madras graduates Tarun Mehta and Swapnil Jain in 2013.
Discover how IIT Madras graduates Tarun Mehta and Swapnil Jain founded Ather Energy and built one of India’s leading electric scooter companies through technology, software and charging infrastructure.
Written by TFN Research Desk | covering startups, technology, venture capital, and business strategy
Quick Facts
| Founders | Tarun Mehta, Swapnil Jain |
| Education | Both founders – IIT Madras (Tarun Mehta – dual degree, Engineering Design and Renewable Energy; Swapnil Jain – Mechanical Engineering, later Master’s in Engineering Design) |
| Prior Ventures | Tarun Mehta – Deputy Manager, Ashok Leyland |
| Role | Co-Founder and CEO, Ather Energy (Tarun Mehta); Co-Founder and CTO (Swapnil Jain) |
| Founded | 2013 |
| Sector | Electric Vehicles |
Introduction
Tarun Mehta had already tried the conventional path and found it unbearable. After a rejected consulting application and a stint as Deputy Manager at Ashok Leyland, where he reportedly waited four months just to get his own computer, Mehta went back to his IIT Madras hostel room, determined to build something himself. (BigStory Network) He convinced a professor to let him and classmate Swapnil Jain work on battery packs, India’s weakest link in electric mobility at the time, and Ather Energy was born in 2013. (BigStory Network) Thirteen years later, Ather is a publicly listed company and one of India’s leading premium electric scooter makers. (Wikipedia)
The Ather Energy Story
Mehta and Jain met through IIT Madras’s Entrepreneurship Cell, bonding over a shared interest in sustainable technology and solar energy projects. (StartupTalky) What began as a narrow attempt to fix India’s battery technology quickly expanded, since the founders soon realised the entire electric scooter stack, motor, frame, software, and charging infrastructure, needed to be rebuilt from scratch. (BigStory Network) Early external validation came in the form of a modest grant from IIT Madras and the government’s Technology Development Board in early 2014. (BigStory Network)
Rather than assembling an EV from existing components, Ather insisted on designing everything in-house, the battery packs, vehicle design, and even the onboard software, a decision that slowed initial progress but gave the company tighter control over performance. (Founder Magazine) That approach culminated in the Ather 450, launched in 2018 as India’s first smart, connected electric scooter, complete with a touchscreen dashboard and over-the-air software updates. (Micromobility Newsletter) Early backers included the founders of Flipkart alongside Hero MotoCorp, which became Ather’s largest strategic investor and has steadily deepened its stake ever since. (Micromobility Newsletter)
Ather transitioned to a public limited structure in August 2024 and completed its IPO in May 2025, raising roughly $305-354 million and listing on the NSE and BSE. (Micromobility Newsletter; CB Insights) The stock has performed strongly since, rallying approximately 276% between July 2025 and July 2026, making it one of the best-performing listed EV stocks in India. (Sahi)
Business Model
Ather earns revenue primarily through electric scooter sales, supported by a vertically integrated charging and retail network:
| Revenue Stream | How It Works |
|---|---|
| Electric scooter sales | Ather 450X, 450S, 450 Apex, and Rizta product lines |
| Ather Grid | Proprietary fast-charging network, India’s largest, generating ancillary revenue |
| Ather Space | Direct-to-consumer retail experience centres |
| Software and connected services | Subscription-based features tied to the onboard connected dashboard |
(Sourced from Micromobility Newsletter)
Funding and IPO History
| Round/Event | Year | Amount | Key Investors |
|---|---|---|---|
| Series D | 2018–2020 | Multiple rounds | Hero MotoCorp, Tiger Global, Sachin Bansal |
| Series E | Aug 2024 | $71 million | National Investment and Infrastructure Fund ($1.2-1.3B valuation) |
| IPO | May 2025 | ~$305-354 million | Public listing on NSE/BSE |
| Preferential allotment | Jul 2026 | Up to ₹1,000 crore (~$120 million) | Hero MotoCorp |
(Sourced from CB Insights and Whalesbook)
Overall, Ather has raised approximately $549 million to date, including its 2025 IPO. As of mid-2026, Hero MotoCorp holds roughly 29.5% of the company, making it Ather’s largest shareholder, and has committed a further ₹1,000 crore in fresh capital to deepen that position. (Whalesbook)
Revenue and Growth
| Metric | FY25 | FY26 |
|---|---|---|
| Revenue | ₹2,255 crore | ₹3,671.76 crore (up 62.9%) |
(Sourced from Whalesbook)
Notably, Ather’s public listing directly boosted Hero MotoCorp’s own results: a one-time ₹722.18 crore gain from the dilution of its Ather stake during the IPO helped drive a 65.2% year-on-year jump in Hero’s consolidated Q1 FY26 net profit. (Business Standard) Ather continues to operate in an investment phase, prioritising manufacturing expansion, including a new factory in Maharashtra, over near-term profitability. (Whalesbook)
Ather Energy vs Competitors
Ather competes with Ola Electric, TVS iQube, and Bajaj Chetak in India’s electric two-wheeler market, along with Hero’s own in-house VIDA brand, which held a 10.2% market share in FY26. (Whalesbook) Ather has positioned itself firmly at the premium end of the category, distinguishing itself through its proprietary Ather Grid charging network and software-first approach.
Key Takeaways
- Tarun Mehta and Swapnil Jain founded Ather Energy in 2013 out of an IIT Madras hostel room, initially focused on fixing India’s weak EV battery technology.
- The company launched India’s first smart, connected electric scooter, the Ather 450, in 2018.
- Ather listed on the NSE and BSE in May 2025, raising roughly $305-354 million in its IPO.
- FY26 revenue grew 62.9% to ₹3,671.76 crore, with Hero MotoCorp now holding a 29.5% stake and committing further capital.
- The company competes with Ola Electric, TVS iQube, Bajaj Chetak, and Hero’s own VIDA brand in India’s EV two-wheeler market.
FAQs
Who founded Ather Energy?
Tarun Mehta and Swapnil Jain founded Ather Energy in 2013, both graduates of IIT Madras.
Is Ather Energy a public company?
Yes, it listed on the NSE and BSE in May 2025 following its IPO.
How much funding has Ather Energy raised?
Approximately $549 million to date, including its IPO, with Hero MotoCorp as its largest shareholder.
Who are Ather Energy’s competitors?
Ola Electric, TVS iQube, Bajaj Chetak, and Hero MotoCorp’s own VIDA brand.
© The Founder Nation | Written by TFN Research Desk
