Hero Electric Vehicles raises INR 200 crore led by UAE's Gulf Islamic Investments
Hero Electric Vehicles Pvt. Ltd., India's largest electric vehicle manufacturer, has raised Rs 220 crore in a funding round led by the UAE's Gulf Islamic Investments as it seeks to accelerate domestic growth with an eye toward international expansion.
According to one person familiar with the transaction's details, the round values the company at more than Rs 1,000 crore. The proceeds of the round, which included existing investor Oaks Asset Management, will be used to expand production capacity, consolidate market position, and invest in futuristic technology. Avendus Capital was the exclusive financial advisor to Hero Electric on the transaction.
"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,” Naveen Munjal, managing director of Hero Electric said in a statement, adding that policies are now extremely conducive for the growth of the EV two-wheeler segment. He said that despite the Covid-19 pandemic, the company expects sales to grow at over two-fold from the last fiscal.
Munjal stated that as part of its expansion strategy, Hero Electric intends to establish multiple plants over the next few years and will also focus on India-centric, cost-effective innovations to drive the growth of electric mobility.
Hero announced plans in April to form a joint venture with Taiwanese electric-scooter startup Gogoro, adopt the latter's battery-swapping technology, and build battery stations across India. Hero's fundraising effort comes at a time when competition in the nascent Indian electric two-wheeler market is heating up.
Ola is just a few weeks away from launching its electric scooter and a plant capable of producing 10 lakh vehicles. Ather Energy, based in Bengaluru, plans to increase its capacity by 5 lakh units by next year. Hero stated that it aims to sell over 10 lakh units per year in the coming years, but did not provide a specific timeline.
According to one person familiar with the transaction's details, the round values the company at more than Rs 1,000 crore. The proceeds of the round, which included existing investor Oaks Asset Management, will be used to expand production capacity, consolidate market position, and invest in futuristic technology. Avendus Capital was the exclusive financial advisor to Hero Electric on the transaction.
"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,” Naveen Munjal, managing director of Hero Electric said in a statement, adding that policies are now extremely conducive for the growth of the EV two-wheeler segment. He said that despite the Covid-19 pandemic, the company expects sales to grow at over two-fold from the last fiscal.
Munjal stated that as part of its expansion strategy, Hero Electric intends to establish multiple plants over the next few years and will also focus on India-centric, cost-effective innovations to drive the growth of electric mobility.
Hero announced plans in April to form a joint venture with Taiwanese electric-scooter startup Gogoro, adopt the latter's battery-swapping technology, and build battery stations across India. Hero's fundraising effort comes at a time when competition in the nascent Indian electric two-wheeler market is heating up.
Ola is just a few weeks away from launching its electric scooter and a plant capable of producing 10 lakh vehicles. Ather Energy, based in Bengaluru, plans to increase its capacity by 5 lakh units by next year. Hero stated that it aims to sell over 10 lakh units per year in the coming years, but did not provide a specific timeline.
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