Hero Electric raises 160 crores from Alpha Capital Advisors

Funds to be used to diversify Hero Electric’s product portfolio and acquire technology

Hero Electric has announced it has raised INR 160 crore from Alpha Capital Advisors, a Mumbai-based investment management firm. With this investment, Alpha Capital Advisors gets a significant minority stake in the automaker.

Hero Electric has a manufacturing facility in Ludhiana. The company plans to make significant additions to its manufacturing capacity by setting up multiple plants over the next five years. It will also focus on India-centric, flexible and cost-effective innovations that will drive the growth of electric mobility. The company is targeting exponential growth by doubling sales every year.

“Aligning with the Government of India’s vision for electric mobility, Hero Electric has been a pioneer in developing a range of best-in-class electric 2 and 3 wheelers. This fund infusion will help us diversify our product portfolio, acquire new technology and focus on strengthening our research and development capabilities to achieve certain rate of localisation. Progress in all these areas will help accelerate Hero Electric’s already robust growth,” said Naveen Munjal, Managing Director, Hero Electric.

Over the past decade, Hero Electric has launched 15 electric two-wheelers in India. The company claims to have a 45% share of the country’s electric two-wheeler market.

The year 2018 has been important for Hero Electric, as the company unveiled a line-up of its global products in India and transitioned its entire product portfolio to lithium-ion battery-powered two-wheelers. It now plans to launch more key products in a phased manner.

Alpha Capital Advisors is an investment management firm founded by Vishal Ootam and Vivek Anand that invests in entreprenuer led consumer facing businesses in India. Some of their investments include Food Link Services Pvt. Ltd., a banqueting and catering major, InCred Finance and CredAble.

Steer Advisors, founded by Rajesh Doshi, were the financial advisors to Hero Electric for this deal.

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