Electric vehicle maker Hero Electric Vehicles Pvt. Ltd on Sunday said that it has raised Rs220 crore as the first part of its Series B funding led by Gulf Islamic Investments (GII) along with participation from existing investor OAKS.
The company will direct this investment towards the objective of further supporting the EV industry and ecosystem, it said in a statement. Avendus Capital was the exclusive financial advisor to Hero Electric on the transaction.
The electric 2-wheeler maker will allocate this investment towards expanding production capacity, consolidating market position to strengthen market leadership, invest in futuristic technology and growing 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 statement said.
“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 Naveen Munjal, managing director, Hero Electric.
Hero Electric currently has over 700 sales and service touchpoints spread across the country with over 3.5 lakh electric two-wheelers in India.
“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,” said Pankaj Gupta, Founding Partner and Co-CEO of GII.
This article was first published in livemint.