Hero Electric raises Rs 220 crore growth capital, targeting 1 million units
Hero Electric, one of the oldest EV two-wheelers in India, has announced the first part of its series B funding of Rs 220 crores. Gulf Islamic Investments (GII) led the funding along with participation by OAKS asset management Pvt. Ltd. Hero Electric will relocate the investment to increase the production capacity, consolidate market position and also invest in future technologies.
On the occasion, Mr Naveen Munjal, Managing Director, Hero Electric said, "The Electric vehicle 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".
Hero Electric is the market leader in electric two-wheelers and holds a 35 per cent share of the market. The electric two-wheeler maker has reskilled over 6,000 employees in line with new challenges and changing customer behaviour. With the new funding, Hero is aiming to double its sales along with producing India-specific models.