BUSINESS MODEL AND COMPANY

ANALYSIS:

MOBILITY INDUSTRY-
ATHER ENERGY

Presented by- GROUP 3

 Ather Energy, an Indian electric two-wheeler manufacturer founded in 2013, is making waves in the country's EV market. Their claim to
fame is the Ather 450 series of electric scooters, known for their performance and smart features. As of May 2023, they boast over 1000
fast-charging stations spread across 80+ Indian cities, with a robust manufacturing presence in two facilities – Hosur, Tamil Nadu, and
Whitefield, Bangalore – capable of producing 110,000 scooters and 120,000 battery packs annually.

1 2 3 4 5 6 7 8
TIMELINE

OCT, 2013 DEC, 2014 MAY, 2015 FEB, 2016 SEPT, 2018 JAN, 2021 SEPT 2023 PRESENT
Indian electric vehicle $1 Mn Seed funding $12 Mn funding from Ather S340 was Launches the Ather Ather Energy began Raises $109 Mn from NIIF 4 Models including Ather
company founded by raised from flipkart Tiger Global for unveiled as their first 450 electric scooter operations at its and other investors. 450 Plus launched in Jan
Tarun Mehta and founders Product development, electric scooter production facility in Launched 450S - 2024, and Ather Ritza
Swapnil Jain and Launch prototype Hosur, Tamil Nadu Premium Electric Scooter (Upcoming-Apr,2024)

Single experience
center (Ather 101.6% year-on-
COMPETITORS
27 cities across
Space) in year growth from
15 states.
Kathmandu, FY’22 to FY’23 1.04 L units
2.6L Units 1.6L Units 71k Units 30k Units
Nepal, 12.18% Market
31% Market 19.4% Market 8.3% Market 3.49% Market
Share
Share Share Share Share
 Product Portfolio
Ather partnered with OTO to
offer easy financing options
OTO for their electric scooters,
Partnerships
making them more
accessible to young
customers.

Ather teamed up with

Magenta Magenta ChargeGrid to
expand India's EV charging
Chargegrid network, aiming to ease
range anxiety and boost
electric vehicle adoption.

Hero MotoCorp invested in

Ather Energy, becoming a
Hero
major shareholder and
Motocorp providing manufacturing and
distribution expertise to help
Ather grow.
45OS 45O X 45O Apex

Seed Funding-$ 1 Mn Series B- $ 27 Mn Series C- $ 11.2 Mn VC Roud- $ 109 Mn

2014 2015 2016 2019 2020 2022 2023 FUNDING

ROUNDS
Series A- $ 12 Mn Series C- $ 51 Mn Series D- $ 51 Mn
Series E- $ 176 Mn
 Strategy Founder’s Insights Blue ocean strategy, backward integration
maybe, r and d centered organisation

Shifting focus from R&D to Marketing

Intensive R&D focus but never really compelled to sell as Ather is
Launching a new product
beflagbearer of building great products with specifications. 10-30 times
more powerful compared than competitors. Market realised EV was
viable. They are good at storytelling but not good at marketing in sharing
the content to people.
MARKETING RESEARCH SECOND ROUND OF DEVELOPING A PRODUCT RAISING FUNDS
AND DESIGNING RESEARCH PROTOTYPE AND PITCH FINALISATION
PROTOTYPE & SPECIFICATIONS
BLUE OCEAN STRATEGY Marketing
Consumer product In 2018 they realised
Very difficult for the R and D centered Future
testing- sorted out
To understand if By 2016 they had an
that the product was not
Inisights customers like what they engineered prototype They collaborated with
companies to disrupt the market leading R&D feedback very early,
met 40 customers every
are seeing- They said that was not upto the
looking good in person
so moved to cast
the entrepreneurs such
Highly 85000 price. 20 people as Sachin from Flipkart
to less competitors. efficient
Saturday. Understood preordered, 8 people
mark aluminium instead of
to finalise on their pitch
what there life is like and gave the money First ones to do it so steel so engineering
INPUT COST REDUCTION realised that customers didn’t get that high a massively changed.
to investors because
they weren’t getting any
Operations love electric vehicles Battery pack had to
Govt incentives of very high quantum In Progress but hate all the available
Till March 2014 ideation fallout. 40-100 people
change and the battery
funding.
of that design 25 km/hr 3-5 hrs pitching the So they tried to
products. So a good changed it to sporty power also increased
product to finalising persuade them to put in
product is required. exciting fun. every year.
the pitch to see what the money. They would
They thought they don’t
people get excited have closed if Sachin
First investment- By mid 2014 they have any legacy so they
from Flipkart and Binny
about. 24-30 such
Focus on Customers Experience designer in June 2013
for a sketch- that is what
decided 60 km/hr and
fast charging. Specs kept sessions. Around 1000
can wait for some time
but the product has to
hadn’t raised money .

450 looks today. on increasing. people for market be exceptional.

If Ather comes into a problem, fixing the problem is important but rethinking the research

entire business becomes crucial. Eg rebuilding the product development teams,

changing the hardware, hire more for on line delivery.
Product based Differentiation
Most startups in hardware if you talk about engineers. Long term pros-
Backward Integration entry barrier very low. Maybe 1-2 competitors but metoo companies
chances very low as they also will need time to build up. Ramp up fast in
Semiconductor chip and lithium ion cell shortage in India. The latter should
be there in India because there is the biggest EV boom. Actual demand 4-5 hardware
times higher than the lithium ion cells market can provide- significant
constraint
 Brand Strategies
Never in a hurry approach One city at a time Experience center, “Ather Space”

They preferred going to one city at a time and Rather than creating traditional dealership
From the speculation of entering the market in 2017 started with Bangalore, followed by Chennai, after a showrooms, Ather used experience center called
to actually launching in 2018, it took enough time to year launching . “Ather Space”.
build one of the best two-wheeler vehicles in India They never sold the vehicle in any other city than Aimed at increasing product understanding,
the ones they are operating. providing customer education, and giving a first-
The total development cycle of the scooters being 5 They might have lost thousands of sales due to this hand experience of the product to consumers.
years when it generally takes 18-30 months for a strategy but this made sure that the aim of the
simple two-wheeler. company to provide the best customer service, is Test rides are also provided at the Experience
achieved. Centers and can be pre-booked on the company’s
website.

AtherGrid Ather One Ather Community

Ather’s own charging network in Bangalore &

Chennai. These DC-fast-charging stations use Subscription plan: They include everything right from
Ather’s proprietary charging method at 1 km/min. charging at home to the data connection for all the
The stations also have a 3-pin socket to supply AC intelligent features, specifically over-the-air Ather Community, community of people who
power to other electric vehicles that do not use upgrades, and most importantly these are not owns the EV. They call them for meets and they
Ather’s connector. revenue-based rather than these are owner focused. even invite them for City Launch.
Other vehicles can connect to charging point and In addition to purchasing the electric scooter,
sing the Ather Grid app for iOS and Android. With customers can subscribe to different plans.
over 30 locations in Bengaluru, 10 in Chennai, and
several more planned in other cities across India.
 Brand Strategies
Electric Scooter Production Research & Development To Produce Smart EVs Intelligent Touchscreen Dashboard
Ather Energy scooters come equipped with an
intelligent touchscreen dashboard and
It strives to enhance battery efficiency, range, and
connected features. The dashboard provides
The company focuses on creating high- overall performance, as well as introduce new
riders with a host of features and functionalities –
performance vehicles with advanced technology features and innovations.
Real-time data, Turn-by-turn navigation, Ride
and a futuristic design. It prioritizes the factors like The highly sought feature of EVs is their smartness.
modes, Vehicle diagnostics, Smartphone
range, power, and efficiency to create an eco- The EVs of Ather Energy are called “Smart
connectivity, Location tracking, Software updates
friendly vehicle at an affordable cost. Vehicles.”
This interface enhances the overall user
experience and provides access to vital
information.

AtherGrid Strategic partnerships and collabs D2C Sales

Experience centers to test-ride their electric scooters
since their offering is product heavy for Ather Energy adopts a direct-to-consumer sales
understanding the product technology. approach, bypassing the traditional dealership
Digital marketing, including social media and online Strategic partnerships and collaborations expand model. They have their own experience centers
advertising, to create brand awareness and engage their reach and integrate their products into shared and online sales platform where customers can
with customers. mobility solutions. explore and purchase their electric scooters. This
Product launch event- buzz, attract media coverage direct approach allows them to have a closer
to establish brand image and innovative features. Ex: relationship with their customers and provide a
Highlighting reverse feature of the Ather 450x - Get seamless buying experience.
out of a tricky situation ad.
 GE McKINSEY MATRIX
Cost Uniqueness

Differentiation
Ather Energy fit into the "Differentiation" category
given its focus on high-performance electric scooters
Broad Target COST LEADERSHIP with unique features. They are not competing on
being the lowest cost provider but rather on
providing a product that stands out in the market due
to its technology, performance, and related services
like Ather Grid.

Integrated Cost
Leadership/
Differentiation

COST DIFFERENTIATION
Narrow Target FOCUSTED COST
LEADERSHIP
 Discovering Core Competencies Of Ather Energy
Competitive Advantage

Differentiation
Four Criteria of Sustainable Advantages:
Innovation
Brand and Reputation
Valuable Strategic Partnerships
Resources Technology Utilization
Ather Energy's commitment to R&D and its Supply Chain Management
Resources are divided into tangible and comprehensive charging infrastructure are examples of
intangible. Ather's tangible resources include valuable resources.
their manufacturing facilities, scooters, and
Value Chain Analysis:
charging stations. Intangible resources include
their brand reputation, proprietary technology,
and customer loyalty. Maintain
Rare
Ather Energy must maintain its core competencies such
Ather Energy's proprietary software and user interface
as its manufacturing quality and innovation in EV
could be considered rare.
technology.

Capabilities
These are the company's abilities to effectively Costly to Imitate Upgrade
utilize its resources. For Ather Energy, this include
their capability in innovative electric scooter Ather's in-depth knowledge of the Indian market and its
Regularly improve and upgrade its value offerings, like
design, advanced battery technology, and smart operational efficiency might be costly for competitors to
enhancing the Ather Grid and their scooters' software
connectivity features. They are also capable of imitate
and hardware.
managing an extensive charging infrastructure
network.
Outsource
Non Substitutable
Ather may choose to outsource non-core activities like
Ather's eco-system of products and services, including after market accessories, logistics and distribution that
their Ather Grid and subscription services, provide a others can perform more efficiently, allowing them to
unique offering that's difficult to substitute. focus on their strengths.
 Grand Strategy Matrix
Market Development: Market Penetration: Product Development: Forward Integration:
Ather can increase its market
Ather Energy has the
Competitive Position share in the existing market by
potential to expand into new Ather Energy is known for its
strengthening its marketing Possibly by opening more
geographic markets within technology-driven approach.
efforts, offering competitive exclusive Ather showrooms,
India and abroad where They can continue to innovate
pricing strategies. They could setting up more charging
demand for electric vehicles is their product line by
focus on converting users of stations along with existing
growing. Entering new regions introducing new features,
traditional scooters to electric lines.
could help capture untapped improved battery technology,
scooters within their current
customer segments. or new models.
operational areas.

Backward Integration: Horizontal Integration: Related Diversification:

Ather could diversify into

Ather might choose to
related businesses where it
manufacture more of its
Ather Energy and Hero Moto can leverage its core
components in-house, like
Corp collaboration is a legit competencies. This could
batteries or motor controllers,
step towards horizontal involve expanding into electric
to reduce dependency on

II
Integration. bikes, or other mobility
suppliers, lower costs, and
solutions that complement its
improve quality control.
current product offerings.

Market Growth
III IV
 Business Model Canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
R&D for Product Development: Customer Support: Dedicated
Suppliers and Vendors: Urban Commuters:
Continuous research and development Innovative Electric Scooters: customer service through phone,
Partnerships with to innovate and improve technology. email, and in-person at Ather Individuals looking for an
High-performance, smart
Manufacturing and Assembly:
suppliers of batteries, electric scooters with quick Spaces (experience centers).
efficient, eco-friendly, and cost-
Production activities to ensure high-
motors, and other critical quality manufacturing of electric acceleration, long-range, and effective mode of transportation
After-sales Services:
components. scooters.
minimal environmental Maintenance, repair services, and in urban and semi-urban areas.
Marketing and Brand Building: Activities
Financial Institutions: aimed at promoting the brand, engaging impact. extended warranties for
Banks and financing with potential customers, and building Smart Connectivity: Features customer retention and
Tech-savvy Consumers:
market presence. satisfaction.
companies offering like navigation, remote
Customers interested in smart,
consumer finance diagnostics, over-the-air Channels
Key Resources connected devices and the latest
options. updates, and ride statistics
Talented Workforce: Engineers, Online Sales: Direct-to-consumer technology in mobility.
Government and designers, and professionals in R&D,
to enhance the user
sales through the Ather Energy
Regulatory Bodies: marketing, and operations. experience. website, enabling pre-orders,
Eco-friendly Transportation: bookings, and customer inquiries.
Environmental Enthusiasts:
Engagement with Manufacturing Facilities: Infrastructure Individuals and organizations
A sustainable alternative to Experience Centers: Physical stores
government entities for for the production and assembly of
where customers can experience the passionate about reducing their
electric scooters. fossil fuel-powered vehicles,
compliance, incentives, scooters firsthand, take test rides,
carbon footprint and promoting
contributing to reduced and engage with the brand.
and infrastructure Technology Infrastructure: Software
sustainability.
and hardware technology for scooter
pollution and greenhouse Dealerships: Partnered dealerships
support like charging gas emissions. for wider geographic reach and
performance, connectivity, and
stations. customer engagement. accessibility.

Cost Structure Revenue Streams

R&D Expenses: Significant investment in research and development for product Sales of Electric Scooters: Primary revenue through direct sales of Ather scooters.
innovation. Subscription Services: Recurring revenue from subscription-based services for
Manufacturing and Operational Costs: Costs related to the production, assembly,
connectivity, diagnostics, and software updates.
and quality control of electric scooters.
Accessories and Merchandise: Additional revenue from the sale of scooter
Marketing and Sales Expenses: Costs associated with marketing campaigns, brand
accessories, merchandise, and apparel.
promotion, and sales channels.
 New Vehicle Platform

Future The team has begun work on it and it will be

more scalable According to Mehta, the 50,000-

Opportunities-
unit sales mark, when calculated on a per-unit
basis, ought to be able to break even.

FOUNDER’S New Product Development

Tarun Mehta emphasizes the importance of building

INSIGHTS products that earn consumer trust through quality

and reliability, a strategy that has historically
succeeded in the Indian market across various
product categories.

International Expansion
With a solid foundation in India, Ather Energy is poised for
international expansion, exploring new market opportunities for
electric two-wheelers, reflecting India's growing influence in the
global EV landscape.
Ather aims to raise $400 million to a valuation of $2billion.
 OUR SUGGESTIONS
PROMOTION COLLABORATION
Marketing strategy to remove bias Ola can partner with International
for product quality companies like Gogoro, it can shift from a
fixed battery system to a replaceable
battery model, reducing the waiting time
to charge

RESEARCH AND DEVELOPMEMT PENETRATION

R&D being a strength, more focus on Market penetration in Tier 2: Targeting a
diversification of portfolio- inclusion of new customer base would help increase their
bikes footprint rapidly.

MERGERS AND ACQUISITION GOVERNMENT ALLIANCE

Manufacturers of environmentally friendly Seek formal partnership or endorsement from the state
battery components. government, aligning Ather’s products with the schemes.
Thankyou