Avendus Capital Advises Hero Electric on Its INR 2,200 mn Fundraise From GII and OAKS

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 aims to sell over 1 million 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

Hero Electric, since its inception in 2007, has worked tirelessly to further build the legacy of the brand Hero by journeying to electric. As market leaders, Hero has seen an upward trajectory that will see tremendous growth in the coming years thanks to the support and initiatives
taken by Central and State governments. With this round of initial funding in this series, we enhance our market position while maintaining leadership with innovative product offerings for the diverse and demanding customer of today.
 

The Electric Vehicles industry in India is at the cusp of disruption and the 2-wheeler segment, in particular, is expected to drive a large part of the EV adoption in India in the next few years. Hero Electric is a clear market leader in its category and has built a strong platform trusted by its 350K+ end customers. With a pan India presence, strong product pipeline and one of the most experienced teams in the industry, they are perfectly positioned to ride the EV wave in India.
 

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. Hero Electric has established itself as a champion in the country’s electric vehicles segment and is exceptionally well positioned to achieve multi-fold growth in the coming years. We’re excited to partner with Sohinder, Naveen and their world-class management team to continue to accelerate their impressive growth trajectory and positively impact the widespread adoption of electric vehicles in India.

We have been tracking this sector in India and globally are very excited to have partnered with Hero Electric who are the clear market leaders in this space. We believe that over the next few years, the electric vehicles market is going to grow exponentially. Our belief is that this investment round will put the brand Hero firmly in a leadership position. Hero is poised to grow multi-fold over the next few years, and we are only happy to be part of this growth story.