Ather Energy’s highly anticipated debut on the public bourses has created waves across India’s startup and investment landscape. The electric vehicle (EV) manufacturer listed with strong investor interest, rewarding early backers with substantial returns. Among the top beneficiaries stands IIT Madras, whose early faith in Ather Energy has resulted in one of the most impressive windfalls of the IPO season.
IIT Madras, through its incubation entities—the IITM Incubation Cell and IITMS Rural Technology and Business Incubator—sold 4,191 equity shares during the offer for sale (OFS). This strategic exit brought the institution a staggering 40-fold return on its original investment. The institute’s role in nurturing Ather Energy from its inception to IPO-stage highlights the increasing impact of academic incubators in driving India’s innovation-led growth.
Early Backers Capitalize on Exit
The IPO also allowed other institutional investors to book profits. Tiger Global-backed Internet Fund III offloaded 400,000 equity shares, earning ₹13.1 crore. This transaction secured an 8.5X return on their initial investment, underscoring Tiger Global’s consistent ability to identify and back high-growth startups in India’s electric mobility space.
The National Investment and Infrastructure Fund (NIIF), another key stakeholder in Ather Energy, chose to exit partially and walked away with ₹86.4 crore. NIIF clocked a 78.5% return on its investment, reinforcing the value proposition of India’s clean-tech and EV segments in the eyes of sovereign-backed funds.
Ather Energy’s successful listing reflects a broader trend—investors who committed early to India’s green mobility journey are now reaping the benefits as these companies reach maturity and enter the capital markets.
Ather’s Journey from Campus Innovation to Market Leader
Founded in 2013 by IIT Madras alumni Tarun Mehta and Swapnil Jain, Ather Energy began its journey as an academic innovation project. The company received early support from the incubation arms of IIT Madras, which provided funding, infrastructure, and mentorship during the fledgling phase. With a vision to create India’s first smart and connected electric scooter, the founders built the Ather 450, a vehicle that quickly captured attention for its performance, tech integration, and futuristic design.
Over the years, Ather Energy expanded its product portfolio, upgraded its battery technology, and launched its proprietary charging infrastructure under the “Ather Grid” network. The company scaled rapidly across urban markets in India, challenging traditional two-wheeler manufacturers with a tech-first approach to mobility.
Strategic investments from marquee backers, including Tiger Global, Hero MotoCorp, Flipkart founders, and the NIIF, helped Ather fuel its R&D capabilities and expand manufacturing capacity. The IPO now marks a critical turning point—moving from a high-growth startup to a publicly traded company with broader accountability and access to retail capital.
Strong Investor Interest in EV Plays
Ather Energy’s IPO attracted strong demand from institutional and retail investors, reflecting the broader appetite for EV-related stocks. The company’s commitment to innovation, strong brand recall among urban consumers, and robust revenue growth created an appealing narrative for market participants.
Analysts praised Ather’s vertically integrated approach. Unlike many peers, Ather develops its own battery management system, dashboard UI, and connected features. This design-first, tech-embedded strategy enables better control over quality, brand differentiation, and margins.
Market experts also noted the favorable timing of Ather’s listing. With governments promoting EV adoption through subsidies and infrastructure support, investors increasingly view companies like Ather as long-term bets on India’s energy transition.
IIT Madras: Building Unicorns, One Incubation at a Time
IIT Madras has solidified its position as a powerhouse for deep-tech startups. The institution’s incubation arms actively support ventures in domains such as electric mobility, battery storage, AI, space tech, and cleantech. By backing ventures like Ather, IIT Madras demonstrates how academia can drive real-world innovation and economic impact.
The 40X return on Ather Energy marks a milestone for the institute. Such success stories not only validate IIT Madras’ startup ecosystem but also inspire other academic institutions to strengthen their incubation programs. In recent years, IIT Madras has consistently ranked among the top institutes in India for research commercialization and startup output.
The capital raised from the Ather share sale will likely fuel future startup investments and ecosystem development. It also boosts the credibility of public-private collaboration models in tech-driven sectors.
Institutional Winners Reflect Confidence in India’s EV Sector
The IPO returns earned by Tiger Global, NIIF, and others underscore growing investor confidence in India’s EV narrative. With the government setting ambitious targets for electrification and the private sector investing in charging infrastructure and supply chain localization, the ecosystem appears ripe for sustained growth.
Tiger Global’s 8.5X return demonstrates how international venture capital can profitably support India’s cleantech journey. The fund’s early bet on Ather aligns with its broader strategy of backing high-growth, disruptive startups with scalable platforms.
NIIF’s partial exit with a 78.5% gain also highlights the effectiveness of sovereign wealth and infrastructure funds in de-risking green technology investments. NIIF’s involvement helped Ather scale manufacturing, strengthen policy advocacy, and increase its presence in state-led EV programs.
The Road Ahead for Ather Energy
With the IPO behind it, Ather Energy now stands at a critical inflection point. As a listed company, it must balance innovation with financial discipline, deliver quarterly performance, and deepen its market share amidst rising competition.
The company plans to expand its manufacturing base and double down on R&D. Ather has also hinted at launching newer models, including affordable variants to target mid-segment buyers. Moreover, the company will likely invest in strengthening its Ather Grid charging network, which remains a key differentiator in the EV space.
Ather’s entry into international markets may also materialize in the coming quarters. The company has already received inquiries from Southeast Asia, the Middle East, and Africa—regions with similar urban mobility patterns and rising EV demand.
In the domestic market, Ather faces increasing competition from Ola Electric, Bajaj Chetak, TVS iQube, and newer entrants. However, analysts believe Ather’s strong brand positioning, superior tech integration, and direct-to-consumer distribution strategy will help it sustain its momentum.
Conclusion
Ather Energy’s successful IPO marks a watershed moment for India’s EV startup ecosystem. It showcases how patient capital, academic incubation, and visionary founders can collectively drive transformative outcomes. With IIT Madras securing a 40X return and investors like Tiger Global and NIIF earning significant gains, Ather’s listing reinforces the viability of deep-tech and cleantech investments in India.
As the country accelerates its transition toward sustainable mobility, Ather Energy stands well-positioned to play a leading role. Its strong listing performance not only rewards early backers but also sets the stage for more innovation-driven startups to enter the public market.