Hero Electric has received an investment of 220 Crores as first part of their Series B funding in the country. The primary investor was Gulf Islamic Investments (GII) along with 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 allocation of these funds will be directed towards expansion of production capacity, consolidation of market position to strengthen market leadership, investment in futuristic technology and growth in footprint across India.
“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.
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.”