India's largest electric two-wheeler maker, Hero Electric has raised a fresh investment of Rs. 220 crore in the Series B funding. The fresh investment comes from Gulf Islamic Investments (GII) and OAKS, and the money will be directed towards expanding production capacity, consolidating market position, investing in future technology and growing the brand's footprint across India and other markets. Hero Electric plans to set up multiple plants across over the next couple of years that will be instrumental towards the company's ambition to double sales every year. Hero aims to sell about one million electric two-wheelers per year.
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Speaking on the fresh round of investment, 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. Hero is committed to its mission of - No Emission - and build a sustainable future that is electric."
Hero Electric has a host of new launches planned for the Indian market in the EV space
Adding to it, Sohinder Gill, CEO - Hero Electric said, "Hero Electric since its inception in 2007 has worked tirelessly to further build the legacy of the brand Hero by journeying to electric. As market leaders, Hero has seen an upward trajectory that will see tremendous growth in the coming years, thanks to the support and initiatives taken by central and state governments. 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."
Pankaj Gupta, Founding Partner & 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."
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Hero Electric says it commands a market share of 35 per cent in the EV category with over 3.5 lakh vehicles across the country. The company further says it will focus on India-centric, flexible and cost-effective innovations that help the country become an EV hub globally. The brand has launched over 15 electric two-wheelers over the past decade with a range for retail and B2B customers.
