Hero Electric raises growth capital of Rs.220 crores from GII and OAKS – company targets 1 million (10 lakh) unit sales yearly
Hero Electric has raised growth capital of Rs 220 crores from GII and existing investor OAKS. With this, the company is invested in reaching its 1 million units sales target. This will move forward through production capacity expansion, and consolidation of market position to maintain leadership. Plans include investment in new tech, strengthening plants, new product development, and international market expansion.
The first part of their Series B funding of Rs 220 crores was led by Gulf Islamic Investments, and participation from OAKS. Avendus Capital is the exclusive financial advisor to Hero Electric on the transaction. Funding will be streamlined to support the EV industry and ecosystem.
Investment is allocated to production capacity expansion, consolidating market position for market leadership, investing in future tech, and footprint growth in India, and other markets. With exponential growth and double sales every year in focus, Hero Electric will focus on manufacturing capacity expansion.
Multiple plants will be set up over time. India-centric, flexible, and cost-effective innovations that’ll boost growth in the Indian electric mobility scene are in focus. As the EV market grows, the industry has seen much change in recent years. Recently FAME II policy was revised. Concurrently, state governments are introducing state specific EV policies.
Despite the pandemic, Hero Electric is eyeing grow at over 2X over the last fiscal. In time, Hero Electric aims to sell over 1 million units per year. The current round of investment will expand manufacturing capacities, and R&D spend towards product innovation and launches. “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.
EV Policy initiatives
Hero Electric already reports an upward trajectory. Given current Central and State governments initiatives, the EV industry looks forward to growth. “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” said Sohinder Gill, CEO Hero Electric.
EV Policy aims to expand the range of EVs, and proposes to improve the full electric vehicle portfolio spanning the segment; motorcycles, scooters and cars over next five years. This will include companies being able to skill their respective networks.
To date, Hero Electric has reskilled 6,000 mechanics across India. The company enjoys 35 percent share, and has sold over 3.5 lakh vehicles thus far. Its City Speed segment electric scooters have done well with retail customers and in the B2B segment.