Indian two-wheeler manufacturer Hero Electric has announced getting Rs 220 crore funding in its first part series B funding round. The round was led by Gulf Islamic Investments(GII) along with OAKS. The initial investment of Rs 220 crore will aid in Rs 700 crore investment programme that spans till the year 2025, the core focus is the expansion of company’s business and also includes setting up a new manufacturing plant.

The expansion will help the manufacturer multiply its output three folds at its existing plant in Ludhiana, an expectation of pushing the output of 100,000 units to 300,000 units and set up a plant that can roll out a million units in a year. The company targets to sell a million units by the year 2026. The funding will be put to good use in form of strengthening market leadership, invest in advanced technology and expanding production capacity. The plan falls in line with making India the EV hub of the world along with focusing on increasing the electric infrastructure across the country and abroad. The company has managed to achieve a milestone of selling 350,000 EVs in the last 14 years, about 6000 mechanics have been re-skilled and has over 700 customers and service touchpoints across the country.

Naveen Munjal, Managing Director, Hero Electric said “The EV 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 and increased 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 emissions and build a sustainable future that is electric”