Hero Electric, a Delhi-based two wheeler manufacturer said that it has raised Rs. 160 crores form the investment management firm Alpha Capital Advisors to fund its future expansion. With this investment, Mumbai-based firm has become a significant minority stakeholder in Hero Electric. “This fund infusion will help us diversify our product portfolio, acquire new technology and focus on strengthening our research and development capabilities to achieve a certain rate of localisation. Progress in all these areas will help accelerate Hero Electric’s already robust growth," Naveen Munjal, Managing Director, Hero Electric, said. Munjal also said that it was their first external funding. This fund will help in setting up a new plant.
To realize its vision of growing exponentially and doubling its sales every year, company is planning to set up multiple plants over next five years. It will also focus on India-centric, flexible and cost-effective innovations that will drive the growth of the company. The funds would also be utilised to strengthen the company's research and development capabilities to achieve certain rate of localisation, Munjal added. When Munjal was asked about the company’s divestment to Alpha Capital, he said it is above 10 percent but below 25 percent. He also hinted upon another fund raising in next 12 to 18 months to further support its expansion.
The Company has transitioned its entire product portfolio to lithium-ion battery based two wheelers plans to launch more products in future. Hero electric has launched 15 electric two-wheelers in India in the last decade. It has over 45 percent of market share in country’s electric two-wheeler segment.