Amidst all the news around Ola Electric, one can't help but appreciate the contrast in Ather.
Back in 2013, when Ola(Cabs) was setting off on the path of burning ₹21,000 Cr over the next ten years, Tarun and Swapnil left their jobs to join IIT Madras as project associates for a monthly stipend of ₹15,000. That's how Ather began. Over the next six months, they built the very first battery pack prototype with bare hands. A simple version of a scooter with no money or external help (sans IIT Madras' incubation, of course).
By 2014, they had their first legit prototype. By 2016, the first fully functional vehicle. Between the founders, there was a lot of prototyping experience. They knew which vendor in which lane to go to, how to negotiate with guys speaking in Tamil, how to work around components and machine shops, etc. They had done all that in college. To save money, they hired interns for ₹5-7k/month, and then converted them to full time employees when they graduated from college. They called all this "super valuable".
In contrast, around the same time, OlaCabs had raised over $1 Bil and made a loss of ₹2,316 Cr at a revenue of ₹758 Cr in FY16 alone.
By Jan 2018, after proving its mettle at every stage, Ather became a proper company having raised $43 Mil from Flipkart's Bansals and Hero Motocorp. After four years of extreme work, its products (Ather 340 & 450) were launched in June of that year. Ola was still a Cab company which made a loss of ₹2,842 Cr at a revenue of ₹2,222 Cr in that FY.
But everything changed in Feb 2019. That's when Ola registered Ola Electric and raised $300 Mil (₹2,400 Cr), just like that. On August 15 2021, Ola electric's first product was launched. In Sep 2021, it raised another $200 Mil, and in Jan 2022 some $200 Mil more. In the meantime, its scooters caught fire and burnt people's asses (quite literally). Some of the customers even got critical (very unfortunately), but the company marched on.
Ather worked hard in what could be said as the "right way", while Ola threw money at the problem. Ather delivered a great product, while Ola's batteries exploded and front wheels broke off, sending people to ICU. Ather's founders put skin in the game, while Ola Electric's founder parachuted his way into the company with an existing cash guzzler running on the side (and more on the way).
And yet, Ola Electric IPOed at almost a $5 Bil valuation in August 2024, while Ather barely became a unicorn (with Hero Motocorp owning over 40% of it). Just a few months ago, it seemed like Ola's hype has essentially won against the Ather's David.
But that was a few months ago..
Ola's market share has now come down to ≈25% from a peak of ≈50%. Its reputation is down, so much that it's started making vehicles specially for delivery folks. On the contrary, Ather's market share has reached ≈14%, from ≈8% a while ago.
How long will Ola's BS last? I don't know. But eventually, the world finds its way back to common sense. We just have to wait.
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