Hero Electric Vehicles Pvt Ltd has raised Rs 220 crore in Series B funding round led by Gulf Islamic Investments (GII).
The funding round also witnessed the participation of OAKS.
A company statement said that it will direct this investment towards the objective of further supporting the electric vehicle industry and ecosystem.
Avendus Capital was the exclusive financial advisor to Hero Electric on the transaction.
Hero Electric will allocate this investment towards expanding production capacity, consolidating market position to strengthen market leadership, investing in futuristic technology, and grow footprint across India-like markets.
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, it said.
“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 Electric Managing Director Naveen Munjal said.
He added that the company aims to sell over 10 lakh 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.”
GII founding Partner and Co-CEO Pankaj Gupta said: “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, he added.