Delhi-based electric two-wheeler manufacturer, Hero Electric on Tuesday said it has raised $22 Mn from a Mumbai-based investment management firm, Alpha Capital Advisors.
Bengaluru,11 Dec,2018. RedNewswire/-
Alpha Capital Advisors will pick up a significant minority stake in the company, according to a statement. The privately held Hero Electric declined to specify the size of stake sold.
The funds will be used to build its second factory, develop new products and expand dealer network on hopes that local demand for its eco-friendly products will nearly double in the next few years, said a top company executive.
Investment management firm Alpha Capital Advisors was founded by Vishal Ootam, Vivek Anand, Sandeep Somani and Kenneth Serrao.
Naveen Munjal, Managing Director, Hero Electric, said,“Part of the funds will be used in setting up manufacturing facilities, marketing purposes, new products and R&D. We are setting up a new plant in the south. We already have a facility in Ludhiana, but logistics costs in moving products to the south is very high. We already have a warehouse in Hosur, Tamil Nadu and it makes sense to have a manufacturing plant also there.”
Over the past decade, Hero Electric has launched 15 electric two-wheelers in India. With 45 per cent share of the country’s electric two-wheeler market, the company leads India’s electric mobility revolution.
“We are taking the capacity to 75,000 a year by March next year and are going to set-up another 1 lakh units a year in the south. We can take the total capacity up to 2 lakh units by end of next year,” Munjal added.