Hero Electric in talks to raise funding of $250 million

• ByStartupStory     |    August 27, 2022

Hero Electric Vehicles Pvt. Ltd. is in discussions with investors, including sovereign funds, for its largest fundraising of roughly $250 million to increase its capacity to produce electric bikes in the face of intense competition, according to two people aware of the situation.

On the condition of anonymity, one of the two persons said, “The EV manufacturer is in conversations with a few sovereign wealth funds and venture capital players to raise about $250 million in a Series C fundraising round. The second individual, who also declined to give their name, claimed that the company had employed Jefferies Group to oversee the fundraising.”

Hero Electric, one of India’s oldest such companies, competes with Ola Electric, Ather Energy (supported by Hero MotoCorp), Ampere, TVS Motor, Okinawa Autotech, Euler Motors, Simple Energy, and Bajaj Auto, among others, in the congested market for electric two-wheelers. According to projections by venture capital fund Blume, each of them is vying for a piece of the segment, which is anticipated to increase 24 times to reach 17.7 million units by 2030.

HERO Electric, based in Gurgaon, Haryana, is a pioneer and industry leader in the Indian Electric Two-Wheeler Industry, offering an eco-friendly and cost-effective form of individualised transportation with its broad variety of Electric Two-Wheelers. HERO Electric manufactures a wide selection of High Range and High-Speed Electric Two-Wheelers in its state-of-the-art production facility in Ludhiana and has a nationwide network of Exclusive Sales and Service outlets.

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