Electric two-wheeler manufacturer Hero Electric has raised Rs 220 crore from Gulf Islamic Investments and Oaks Capital. The company is looking to use this capital for raising manufacturing capacity with an aim of achieving a sales target of 1 million vehicles a year.
Talking about the latAll Postsest series B funding, Naveen Munjal, MD of the company, told CNBC-TV18 that the market is quickly expanding exponentially, there is tremendous demand and so a large part of the funds would go toward expanding new manufacturing facility. A lot will also go into R&D, new product developments, and market expansion, he said.
“Basically, we are gearing up to handle 1 million units in the next couple of years and that is the kind of growth we are seeing coming in from now on," said Munjal.
He said this funding of Rs 220 crore is actually a step in direction of receiving more funds going forward. They would also look at investing from internal accruals. The company would also be making more announcements, going forward, he added.
He specified that the current funding would be good enough to take the manufacturing capacity from 75,000 units to 300,000 units, but to reach 1 million units they would require to raise more funds. So, going forward, there would be much bigger round of fundraising, which would be late next year, he said.
Talking about product development, Munjal said they have created an outstanding product offerings and numerous vehicles that caters to different segments and the company wants to increase the number of vehicles in these segments.
“So, for the next three years we have a strong line up - we are going to have electric motorcycles, electric bicycles and also higher speed vehicles coming in. There will be numerous vehicles targeted at the B2B segment, which is an important segment for us,” said Munjal.For the entire conversation, watch the video