Amid increasing competition with Ola Electric and Ather Energy, electric scooter company, Hero Electric has raised Rs 220 crore in series B funding. The fundraise saw participation from Gulf Islamic Investments(GII) in addition to existing investor OAKS. OAKS had earlier invested a sum of Rs 140 crore in the electric vehicles(EV) company in 2018.
The proceeds from the fundraiser would be used by the company to expand its production capacity, invest in new technologies and strengthen its leadership in the market, Hero Electric’s Managing Director Naveen Munjal told financialexpress.com.
With the government’s formulating favorable policies for electric vehicles, competition has been heating up in the sector. Hero Electric’s competitor, Ather Energy has been raising funds aggressively, having raised Rs 260 crore last year in series D funding. Ather is backed by Hero MotoCorp. . Ridesharing company Ola is also making a foray into the EV sector, announcing a plan to invest up to Rs 2,400 crore to build an EV scooter manufacturing plant in Tamil Nadu.
According to a report by financialexpress.com, Hero Electric has set the target to sell over 1 lakh two-wheeler EVs during the financial year 2021-22. Naveen Munjal told the publication that the company had installed 1,650 charging stations across the country to facilitate the growth in sales of EV’s. “now even in terms of sticker price EVs are more affordable(than petrol two-wheelers),” he told financialexpress.com.