Hero Electric Vehicles Pvt Ltd, which manufactures lithium-ion battery-powered two-wheelers, has raised Rs 220 crore ($29.5 million) in the first part of its Series B round of funding led by Gulf Islamic Investments, a UAE-based financial services firm.
Existing investor OAKS Asset Management also participated in this round, as per a press statement. The company will primarily use the money to expand capacity, invest in technology and grow footprint across India-like markets.
“Hero Electric aims to sell over one million units per year in the next couple of years,” said Naveen Munjal, MD at Hero Electric.
Hero Electric, part of Vijay Munjal-led Hero Eco Group, has launched 15 electric two-wheelers in India over the past decade and claims to have 35% share of the country’s market. The company has over 700 sales and service touch points across the country.
The firm had posted net sales of Rs 243 crore during fiscal year 2019-20 as against Rs 178 crore a year before, as per VCCEdge.
In 2019, the company raised Rs 35 crore from UK-headquartered Jupiter India Fund.
Gulf Islamic Investments, which manages around $2 billion in assets across venture capital, private equity, and real estate, among others, has invested in two Indian healthcare companies recently, as per a report — a chain of hospitals and a diagnostics venture. However, the identities of those assets couldn’t be immediately ascertained.