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Warning sign for EV startups? Report says Ather, Ola witnessing lukewarm response from investors

Business TodayBusiness Today · 1y
Warning sign for EV startups? Report says Ather, Ola witnessing lukewarm response from investors

Investors are displaying caution towards electric scooter startups like Ather and Ola Electric in India due to their heavy losses and regulatory uncertainties, according to a report. The lukewarm response to the fundraising efforts of these startups, despite their rapid growth, is being seen as a warning sign by industry executives. Ather's revenue has surged, but losses have more than doubled, while Ola Electric is yet to release its latest financials. Smaller fundraises might sustain them for now, but their growth could be impacted if they fail to attract larger rounds of funding. Legacy automakers are also entering the EV space, posing additional threats to the startups.

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