The funding, to be made in a number of tranches, will give Hero MotoCorp a 32.5% stake in Euler Motors on a completely diluted foundation, in response to a inventory alternate submitting on Thursday.
Based in 2018 by Saurav Kumar, Euler Motors focuses on designing, manufacturing, promoting, and servicing electrical three-wheelers. The corporate operates in 30 cities throughout India and not too long ago launched its first electrical business four-wheeler.
“This funding reinforces our dedication to accelerated progress via each natural and inorganic enlargement, whereas highlighting the facility of collaboration and flexibility in an ever-evolving market,” mentioned Pawan Munjal, govt chairman of Hero MotoCorp.
In January 2024, Euler Motors raised $20 million in debt from responsAbility Investments AG to scale up manufacturing, develop its distribution community, and strengthen analysis and growth.
For the fiscal yr ending March 2024, the corporate’s turnover stood at Rs 172 crore, a big soar from Rs 49 crore within the earlier fiscal.
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Hero MotoCorp mentioned the funding would supply it with a powerful foothold within the fast-growing electrical three-wheeler market, the place EVs are anticipated to account for 35% of whole gross sales within the close to future.In June 2024, Hero MotoCorp invested Rs 124 crore in IPO-bound Ather Power to convey its whole shareholding within the electrical scooter maker to over 40%.
The funding comes at a time when funding in India’s EV sector has been on the decline. As ET previously reported, funding for Indian EV startups practically halved between 2022 and 2024, as coverage modifications and slowing gross sales progress have led buyers to demand higher unit economics and profitability earlier than committing additional capital.