Hero MotoCorp Limited (HMCL), the world’s largest manufacturer of motorcycles and scooters, is investing nearly $61 million (Rs 525 crore) in electric vehicle company Euler Motors Private Limited.
The investment will be made in one or more tranches consisting of a mix of primary and secondary investments, per a company statement on Thursday. The primary investment would be made by HMCL in equity shares and Series D Compulsory convertible preference shares of the company, pursuant to which HMCL’s stake would be approximately 32.5% on a fully diluted basis.
Additionally, within the aforementioned amount, HMCL may acquire shares from existing shareholders of Euler by way of secondary sale, the statement added.
The investment will provide HMCL with a strong foothold in the fast-growing electric three-wheeler market, where EVs are projected to account for 35% of total sales in the near future, the statement said.
“As we strengthen and diversify our presence in emerging mobility landscape, this investment allows Hero MotoCorp to venture into a rapidly growing electric three and four-wheeler market, while unlocking adjacent business opportunities and continuing to cement its leadership in the future of sustainable mobility,” said Dr Pawan Munjal, executive chairman, HMCL.
“This investment reinforces our commitment to accelerated growth through both organic and inorganic expansion, while highlighting the power of collaboration and adaptability in an ever-evolving market,” Munjal added.
Euler Motors, which is backed by Singapore’s sovereign wealth fund GIC, has a presence in 30 cities in India and is engaged in the designing, manufacturing and sale and service of electric three-wheelers. They recently launched their first electric commercial four-wheeler.
Euler Motors last raised $24 million in its Series C funding round led by existing investors British international Investment, Blume Ventures and new investor Piramal Alternatives in May last year.
The company’s turnover for the financial year ended March 31, 2024 stood at Rs. 172 crore.
