New Delhi, Sep 12 (IANS): Electric vehicle (EV) company Ather Energy, aiming to raise more than Rs 3,100 crore via its initial public offering (IPO), saw its losses widen 22 per cent to Rs 1,060 crore in FY24, as its operating revenue declined 1.5 per cent to Rs 1,753.8 crore (year-on-year) in the last fiscal.

The electric two-wheeler firm spent Rs 2,674.2 crore in FY24. As per its draft red herring prospectus (DRHP) filed with the markets regulator SEBI, the revenue decline was due to reduction in the subsidy provided by the government.

“As a result of the reduced subsidy, our customers faced an increase in the retail price of our E2Ws ranging from Rs 20,434 to Rs 30,285. This contributed to a slight decrease in our revenue from operations,” said the company.

Ather Energy had clocked 335 per cent growth YoY in its operating revenue to Rs 1,780.9 crore in FY23.

In FY24, the EV firm spent the largest portion of its total expenses on the cost of materials consumed, which increased 2.7 per cent YoY to Rs 1,579.2 crore.

The company’s total employee benefit expenses went up 10.3 per cent to Rs 369.2 crore in FY24, from Rs 334.8 Cr in FY23.

As per Ather’s DRHP, its IPO will comprise Rs 3,100 crore worth of fresh issue and an OFS (offer for sale) component of 2.2 crore equity shares. The funds raised will be used to establish a new electric two-wheeler manufacturing facility, along with boosting research and development.

Last month, Ather Energy secured $71 million led by the National Investment and Infrastructure Fund (NIIF), taking its valuation to $1.3 billion and making it a new unicorn. With this, the company managed to raise over $125 million in the last three-four months.