Hero Electric raises growth capital of Rs.220 crores from GII and existing investor OAKS, announces its ambition of reaching its’ target of 1 million units!
India: Hero Electric Vehicles Pvt. Ltd., India’s largest electric vehicles maker backed by six decades of the Hero legacy, today announced the first part of their Series B funding of Rs.220 crores. Gulf Islamic Investments (GII) led the round along with participation from OAKS. The company will direct this investment towards the objective of further supporting the EV industry and ecosystem. Avendus Capital was the exclusive financial advisor to Hero Electric on the transaction.
The electric 2-wheeler market leader will allocate this investment towards expanding production capacity, consolidating market position to strengthen market leadership, invest in futuristic technology and grow footprint across India like markets. To achieve the vision of exponential growth and double sales every year, the company plans to make significant additions to its manufacturing capacity by setting up multiple plants over the next couple of years. It will also focus on India-centric, flexible, and cost-effective innovations that will drive the growth of electric mobility which is in line with making India the EV hub of the world.
“The Electric vehicles market has undergone tremendous change over the last few years since we raised our first round of funding. The policies are extremely conducive for the growth of the segment and despite the pandemic, the company is poised to grow at over 2X from the last fiscal. Hero aims to sell over 1 million units per year in the next couple of years. This round of investments which is a first of a larger scheme will help expand our manufacturing capacities, increase R&D spends that will enable us to continue to launch innovative products to disrupt the category. Hero is committed to its mission of – No Emission and build a sustainable future that is electric” said, Mr. Naveen Munjal, Managing Director, Hero Electric.
Adding to this, Mr. Sohinder Gill, CEO Hero Electric said, “Hero Electric since its inception in 2007 has worked tirelessly to further build the legacy of the brand Hero by journeying to electric. As market leaders, Hero has seen an upward trajectory that will see tremendous growth in the coming years thanks to the support and initiatives taken by Central and State governments. With this round of initial funding in this series we enhance our market position while maintaining leadership with innovative product offerings for the diverse and demanding customer of today.”
Mr. Pankaj Gupta, Founding Partner and Co-CEO of GII commented, “We are delighted to be a part of the growth journey of India’s market-leading electric vehicles pioneer - Hero Electric - through our latest round of investments under India Growth Portfolio II. As a sustainability conscious and visionary investor, GII has observed the growing role of electric vehicles in mitigating environmental pollution and the opportunities it presents in India, one of the world’s most populous countries and an important investment destination in the firm’s global strategy. Hero Electric has established itself as a champion in the country’s electric vehicles segment and is exceptionally well positioned to achieve multi-fold growth in the coming years. We’re excited to partner with Sohinder, Naveen and their world-class management team to continue to accelerate their impressive growth trajectory and positively impact the widespread adoption of electric vehicles in India.”
Vishal Ootam, Founder & CEO of OAKS added, “We have been tracking this sector in India & globally are very excited to have partnered with Hero Electric who are the clear market leaders in this space. We believe that over the next few years, the Electric vehicles market is going to grow exponentially. Our belief is that this investment round will put the brand Hero firmly in a leadership position. Hero is poised to grow multi-fold over the next few years, and we are only happy to be part of this growth story.”
V’Ocean Investments has been advised by OAKS Asset Management Pvt. Ltd. (OAKS) on the investment.
Hero Electric over the last 14 years has paved way for the EV industry by growing the ecosystem and infrastructure, offering best in category vehicles with affordable pricing to drive adoption. The company has till date reskilled 6,000 mechanics across India and has been able to empower their network to address consumer dilemmas related to EVs. As market leaders with 35% share and over 3.5 lakh vehicles across the country, the company had in its last fiscal hit record numbers in sales surpassing pre-COVID levels. This interim investment, part of a larger plan is a reaffirmation of the company’s commitment to serve the nation with a green future!
Over the past decade, Hero Electric has launched over 15 electric two-wheelers in India. The company’s best-selling scooters, in the “City Speed” segment have now become the go to bikes for the retail customer and also for the B2B segment across the country.