In one of the most notable investment exits in India’s electric vehicle (EV) landscape, US-based venture capital giant Tiger Global Management has sold its entire 5.09% stake in Ather Energy for INR 1,204 crore, marking a complete exit from the Bengaluru-headquartered electric two-wheeler manufacturer.
Ather Energy Bulk Deal Deal Details and Valuation
According to bulk deal data from the BSE and NSE, Tiger Global—via its affiliate Internet Fund III —offloaded over 1.93 crore equity shares through open market transactions on 6 October 2025, at prices ranging between INR 620.45 to 623.56 per share. The divestment took place shortly after the post-IPO lock-in period ended for pre-IPO investors.
At current levels, Ather Energy’s market capitalisation stands at approximately INR 24,800 crore (as of 7 November 2025), nearly doubling from its IPO valuation of around INR 12,000 crore in April 2025, when the company raised INR 2,900 crore.
A Decade-Long Investment Yields Exceptional Returns
Tiger Global’s journey with Ather began in 2015, when it invested INR 75.23 crore during the company’s Series A round, acquiring 74,732 Series A preference shares at INR 10,067.4 apiece. The investment, made through Internet Fund III, remained untouched in subsequent rounds—a rare long-hold strategy for the firm.
Ahead of Ather Energy IPO, a bonus share issuance (1:261) significantly increased Tiger Global’s holdings to 1.95 crore equity shares, translating to an average acquisition cost of just INR 38.57 per share.
The investor had previously offloaded about 4 lakh shares during the Offer for Sale (OFS) at INR 321 per share, raising INR 12.84 crore. With this week’s sale of the remaining 1.93 crore shares, Tiger Global’s total exit proceeds now stand at INR 1,216.8 crore, implying an extraordinary 16.2X return on its original investment.
Timing and Market Dynamics
The timing of the exit—just days before Ather Q2 FY26 earnings announcement—is strategic. Ather reported INR 645 crore in revenue in Q1 FY26, up 79% year-on-year, though it still incurred a net loss of INR 178 crore, showing signs of improving operational efficiency.
The company’s retail sales have continued to accelerate, hitting a record 26,713 units in October 2025 and commanding a 19.6% market share, solidifying its position as India’s third-largest EV two-wheeler brand, behind TVS Motor and Bajaj Auto, and ahead of Ola Electric in market capitalisation.
Industry Context and Strategic Movements
Tiger Global’s exit from Ather coincided with major strategic developments across India’s auto sector:
- Bajaj Auto announced plans to acquire 24,000 shares in Pierer Bajaj AG for €24.32 million (INR 248 crore), bolstering its stake in KTM’s holding company, Pierer Mobility AG.
- TVS Motor Company, meanwhile, divested its stake in Rapido, the bike-taxi platform, for INR 287.93 crore to Accel India VIII and MIH Investments One BV.
These parallel transactions underscore a period of portfolio realignment and capital reallocation across the mobility and investment sectors, as firms position themselves for the next phase of India’s EV growth.
Tiger Global’s Broader India Strategy
The Ather exit forms part of Tiger Global’s broader move to harvest returns from mature Indian bets. In recent months, the fund has trimmed stakes in PhonePe, Dream11, and Zomato, while maintaining positions in Policybazaar, Delhivery, and Freshworks.
It’s Ather exit—both lucrative and timely—demonstrates the fund’s disciplined liquidity strategy in India’s increasingly public startup ecosystem.
Ather Energy Outlook
Despite the investor exit, analysts maintain confidence in Ather’s growth trajectory. The company continues to expand aggressively, targeting 700 retail outlets, while enhancing charging infrastructure and product innovation.
As India’s EV market is projected to grow over 140% year-on-year in 2025, with EVs expected to form 6% of total passenger vehicle output, Ather remains a core player in India’s transition to sustainable mobility.
Conclusion
Tiger Global’s divestment from Ather Energy not only highlights a textbook example of venture capital success but also marks a pivotal chapter in India’s evolving EV narrative. With profitability on the horizon and strong consumer adoption, Ather’s momentum underscores both the resilience of India’s EV ecosystem and the strategic foresight of early backers who helped propel it forward.
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