Tiger Global Sells Entire 5.09% Stake in Ather Energy for INR 1,204 Crore

Tiger Global, through its Internet Fund III, has fully exited its investment in Ather Energy by selling its entire 5.09% stake for a total of INR 1,204 crore. The transactions occurred via block deals on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), with shares trading around INR 620-623 apiece.

Tiger Global was an early backer of Ather Energy, having first invested $12 million in the company in 2015. This marks a significant exit, although the firm had previously sold a small portion of its holdings earlier this year for INR 12.84 crore, realizing an 8.3X return on that specific sale. Other investors like IIT Madras, NIIF, and Caladium Investment have also reportedly offloaded shares.

This stake sale by a prominent investor occurs at a time when Ather Energy is experiencing positive operational momentum. The company recently overtook Ola Electric in electric two-wheeler (E2W) registrations for the month of October, with a 46% jump in its registrations. Financially, Ather Energy reported a reduced net loss of INR 178.2 crore for the first quarter of FY26, a 3% decrease year-on-year, alongside a substantial 79% surge in revenue from operations to INR 644.6 crore.

Impact: This news highlights a major investment exit from a key player in the Indian EV startup ecosystem. While signifying a complete withdrawal by Tiger Global, Ather Energy's recent strong sales performance and revenue growth suggest underlying business strength. The exit could influence future funding rounds and investor sentiment towards the Indian EV sector, potentially leading to increased scrutiny of valuations and profitability drivers. The ability of Ather Energy to compete effectively and improve its financial metrics will be crucial moving forward. Impact rating: 6/10.

Difficult Terms:

* **Bulk Deals/Block Deals**: These are large volume share transactions conducted between two specific parties (buyers and sellers) outside of the general open market order book. They are typically executed at a negotiated price. * **Offer-for-Sale (OFS)**: A method used by shareholders in a publicly listed company to sell their shares to the general public through the stock exchange. * **E2W Registrations**: Stands for Electric Two-Wheeler registrations. This metric indicates the number of new electric scooters and motorcycles that have been officially registered with government authorities. * **Net Loss**: The total expenses of a company exceed its total revenues during a specific accounting period, resulting in a negative profit. * **Revenue from Operations**: This refers to the income a company generates from its core business activities, excluding any non-operating income like interest or gains from asset sales.