Hero MotoCorp to Invest ₹525 Cr in Electric Three-Wheeler Maker Euler Motors, Acquiring 32.5% Stake
- ByStartupStory | March 21, 2025
Auto giant Hero MotoCorp announced on Thursday (March 20) that it will invest up to ₹525 crore in electric three-wheeler manufacturer Euler Motors.
In a filing with the exchanges, Hero MotoCorp stated that its board has approved a proposal to acquire a “significant stake” in the EV startup in one or more tranches, through a mix of primary and secondary investments.
As part of the deal, Hero MotoCorp will pick up equity shares and Series D compulsory convertible preference shares (CCPS) in Euler Motors, resulting in a 32.5% stake on a fully diluted basis. The auto giant also noted that it may acquire additional shares from existing stakeholders as part of the ₹525 crore deal.
Hero MotoCorp expects the transaction to be completed by April 2025.
Strategic Investment for Growth in EV Market
In a statement, Hero MotoCorp said that the investment will help it establish a “strong foothold” in the rapidly growing electric three-wheeler segment.
“As we strengthen and diversify our emerging mobility portfolio, this strategic investment allows Hero MotoCorp to venture into a rapidly growing electric three and four-wheeler market, while unlocking adjacent business opportunities and continuing to cement its leadership in the future of sustainable mobility,” said the company in a statement.
Commenting on the deal, Hero MotoCorp’s executive chairman Pawan Munjal said:
“… This investment reinforces our commitment to accelerated growth through both organic and inorganic expansion, while highlighting the power of collaboration and adaptability in an ever-evolving market.”
Euler Motors’ Expansion and Recent Developments
The deal comes just months after Euler Motors secured up to $20 million in debt from responsAbility Investments AG. In January 2025, the Delhi NCR-based startup also sold its mobility business to EV fleet startup MoEVing for an undisclosed amount.
Founded in 2018 by Saurav Kumar, Euler Motors is an original equipment manufacturer (OEM) that designs, manufactures, sells, and services electric three-wheelers. The company caters to the logistics, commercial mobility, and ecommerce sectors with its electric mini trucks, capable of handling both heavy and light loads.
Euler Motors claims to have a presence in over 30 cities across India and operates more than 500 charging hubs in Delhi NCR, Hyderabad, and Bengaluru. The startup is backed by investors including Blume Ventures, Asia-Pacific Strategic Investments, and British International Investment (BII), having raised over $93 million in funding to date.
Financial Growth and Market Expansion
According to Hero MotoCorp’s filings, Euler Motors’ turnover grew significantly over the past few years:
FY22: ₹25 crore
FY23: ₹49 crore
FY24: ₹172 crore
The investment also comes as India sees a surge in electric three-wheeler adoption. According to government data, the country registered 6.91 lakh electric three-wheelers in 2024, an 18% increase from 5.83 lakh units in 2023. EVs accounted for 56% of the total 12.2 lakh three-wheelers sold in India last year, driven by ecommerce adoption for last-mile deliveries and government policy support.
With this investment, Hero MotoCorp is positioning itself to expand its footprint in the sustainable mobility sector, while Euler Motors gains the financial backing needed to scale its operations and market presence.
Follow Startup Story
Related Posts
