Ather Energy’s upcoming IPO is set to unlock wealth for more than 1,300 employees. This and more in today’s ETtech Top 5.
Also in the letter:
■ Zomato’s top deck reshuffle
■ South Korea pulls up DeepSeek
■ Snapshot of IT's Q4
Ather Energy’s IPO to unlock Rs 530 crore for employees through Esops
Electric two-wheeler maker Ather Energy’s upcoming initial public offering, set to open on April 28, is poised to generate wealth worth Rs 530 crore for over 1,300 employees through the company’s employee stock option plan (Esop).
Tell me more: The Bengaluru-based firm launched its Esop scheme in 2024, allocating nearly 16.5 million shares to employees. However, this figure may change after the stock lists on May 6, as employees will be subject to a one-year lock-in period before they can sell their shares.
Also Read: Promoters, early backers of Ather Energy eye strong gains through IPO
Issue size: After filing its draft red herring prospectus (DRHP) last year, Ather trimmed the size of its fresh issue from Rs 3,100 crore to Rs 2,626 crore, citing challenging market conditions. The offer-for-sale component has also been reduced by half.
EV market share: Ather will become the second pure-play electric two-wheeler manufacturer to list in India, following Ola Electric. So far in 2025, Ather has sold around 50,479 electric scooters, securing nearly 15% market share, according to Vahan data.
Rivals ahead: Business metrics put Ather Energy behind its listed peers.
Also Read: Ather IPO: Here's what the e-scooter maker plans to do with the funds
Startups, backers under I-T lens for potential fund roundtripping
The income tax department has issued notices to many startup promoters and investors, seeking details of specific investments and tax returns for the three years preceding the year in which the funds were injected.
Driving the news: The notices primarily target startups not registered with the Department for Promotion of Industry and Internal Trade (DPIIT) or where the tax authorities suspect potential “roundtripping” of funds.
Tax officials have also requested bank statements and proof of income from the individuals concerned.
Tell me more: The notices were served under Section 68 of the Income Tax Act, which applies when the source of funds credited to an account cannot be clearly established.
Future tense: The development has unsettled several investors, who fear that the tax department may classify capital raised through share issuances as taxable income. There is also discomfort around disclosing personal tax information or sources of funds to startups in which they have made relatively small investments.
ETtech Explainer: Why Zomato’s Goyal is back in the food delivery hot seat
Rakesh Ranjan has stepped down as CEO of Zomato parent Eternal’s food delivery business nearly two years after his elevation.
Ranjan has not exited the company entirely and is still part of the leadership team at Eternal, the company informed exchanges. However, the reshuffle comes amid a slowdown in Zomato’s core food delivery segment.
Food delivery report card: Zomato reported muted growth in food delivery during the festival-heavy December quarter. Gross order value (GOV), a key sales metric, fell short of the expected 20% growth. However, contribution margins—a measure of profitability—came in stronger than anticipated.
Following its December quarter results, Zomato told shareholders it faced a broad-based slowdown. In an interview in March, Goyal told us that the company plans to roll out multiple new initiatives to address the slowing growth in its food delivery business.
Food delivery feeding qcom: According to a BofA Global Research report, food delivery, long Zomato’s cash cow, is now funding the company’s loss-making quick commerce business.
BofA also forecasts that GOV growth will slow to 16-18% year-on-year over the coming quarters, compared to market expectations of 20%. While this may not appear material, the brokerage noted that it could trigger consensus downgrades for both Zomato and Swiggy.
South Korea agency says DeepSeek transferred user info, prompts without consent
South Korea's data watchdog accused China’s ChatGPT challenger DeepSeek on Thursday of transferring user data without consent.
Go deeper: The Personal Information Protection Commission said DeepSeek failed to obtain user consent while transferring personal data to several companies in China and the US during its South Korean launch in January.
Catch up quick: In February, South Korea's data agency suspended new downloads of DeepSeek’s app after Chinese company admitted it had not complied with certain local data protection rules.
Broader concerns: ET reported on February 17 that authorities in Australia, Ireland, Italy and the Netherlands have also flagged serious security concerns about DeepSeek, leading to leading to bans on its use on government devices. Chart-ed: How IT majors fared in Q4 FY25
India's major IT firms reported mixed results for the March quarter of fiscal year 2025, reflecting ongoing global economic uncertainties and cautious client spending, particularly in North America.
Also in the letter:
■ Zomato’s top deck reshuffle
■ South Korea pulls up DeepSeek
■ Snapshot of IT's Q4
Ather Energy’s IPO to unlock Rs 530 crore for employees through Esops
Electric two-wheeler maker Ather Energy’s upcoming initial public offering, set to open on April 28, is poised to generate wealth worth Rs 530 crore for over 1,300 employees through the company’s employee stock option plan (Esop).
Tell me more: The Bengaluru-based firm launched its Esop scheme in 2024, allocating nearly 16.5 million shares to employees. However, this figure may change after the stock lists on May 6, as employees will be subject to a one-year lock-in period before they can sell their shares.
Also Read: Promoters, early backers of Ather Energy eye strong gains through IPO
Issue size: After filing its draft red herring prospectus (DRHP) last year, Ather trimmed the size of its fresh issue from Rs 3,100 crore to Rs 2,626 crore, citing challenging market conditions. The offer-for-sale component has also been reduced by half.
EV market share: Ather will become the second pure-play electric two-wheeler manufacturer to list in India, following Ola Electric. So far in 2025, Ather has sold around 50,479 electric scooters, securing nearly 15% market share, according to Vahan data.
Rivals ahead: Business metrics put Ather Energy behind its listed peers.
- Ather reported revenue of Rs 1,579 crore in this period, compared to Rs 3,903 crore of Ola Electric.
- Bajaj Auto, Hero Moto and TVS Motor reported toplines of Rs 38,348 crore, Rs 30,954 crore and Rs 32,843 crore, respectively.
- Ola holds the largest market share in the electric two-wheeler space, three quarters into FY25 at 34.08%.
- This is followed by TVS Motor and Bajaj Auto at 19.44% and 18.11% share, respectively. Ather Energy has a share of 10.7%.
Also Read: Ather IPO: Here's what the e-scooter maker plans to do with the funds
Startups, backers under I-T lens for potential fund roundtripping
The income tax department has issued notices to many startup promoters and investors, seeking details of specific investments and tax returns for the three years preceding the year in which the funds were injected.
Driving the news: The notices primarily target startups not registered with the Department for Promotion of Industry and Internal Trade (DPIIT) or where the tax authorities suspect potential “roundtripping” of funds.
Tax officials have also requested bank statements and proof of income from the individuals concerned.
Tell me more: The notices were served under Section 68 of the Income Tax Act, which applies when the source of funds credited to an account cannot be clearly established.
Future tense: The development has unsettled several investors, who fear that the tax department may classify capital raised through share issuances as taxable income. There is also discomfort around disclosing personal tax information or sources of funds to startups in which they have made relatively small investments.
ETtech Explainer: Why Zomato’s Goyal is back in the food delivery hot seat
Rakesh Ranjan has stepped down as CEO of Zomato parent Eternal’s food delivery business nearly two years after his elevation.
Ranjan has not exited the company entirely and is still part of the leadership team at Eternal, the company informed exchanges. However, the reshuffle comes amid a slowdown in Zomato’s core food delivery segment.
Food delivery report card: Zomato reported muted growth in food delivery during the festival-heavy December quarter. Gross order value (GOV), a key sales metric, fell short of the expected 20% growth. However, contribution margins—a measure of profitability—came in stronger than anticipated.
Following its December quarter results, Zomato told shareholders it faced a broad-based slowdown. In an interview in March, Goyal told us that the company plans to roll out multiple new initiatives to address the slowing growth in its food delivery business.
Food delivery feeding qcom: According to a BofA Global Research report, food delivery, long Zomato’s cash cow, is now funding the company’s loss-making quick commerce business.
BofA also forecasts that GOV growth will slow to 16-18% year-on-year over the coming quarters, compared to market expectations of 20%. While this may not appear material, the brokerage noted that it could trigger consensus downgrades for both Zomato and Swiggy.
South Korea agency says DeepSeek transferred user info, prompts without consent
South Korea's data watchdog accused China’s ChatGPT challenger DeepSeek on Thursday of transferring user data without consent.
Go deeper: The Personal Information Protection Commission said DeepSeek failed to obtain user consent while transferring personal data to several companies in China and the US during its South Korean launch in January.
Catch up quick: In February, South Korea's data agency suspended new downloads of DeepSeek’s app after Chinese company admitted it had not complied with certain local data protection rules.
Broader concerns: ET reported on February 17 that authorities in Australia, Ireland, Italy and the Netherlands have also flagged serious security concerns about DeepSeek, leading to leading to bans on its use on government devices. Chart-ed: How IT majors fared in Q4 FY25
India's major IT firms reported mixed results for the March quarter of fiscal year 2025, reflecting ongoing global economic uncertainties and cautious client spending, particularly in North America.
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