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Hero MotoCorp’s board approved a proposal to acquire a “significant stake” in the EV startup in one or more tranches, in a mix of primary and secondary investments
In a statement, the two-wheeler maker said that the investment will help it find a “strong foothold” in the fast-growing electric three-wheeler market
Founded in 2018, Euler Motors is an OEM which designs, manufactures, sells and services electric three-wheelers and min-trucks
Auto giant Hero MotoCorp on Thursday (March 20) announced that it will invest up to INR 525 Cr in electric three-wheeler manufacturer Euler Motors.
In a filing with the exchanges, the auto giant said that its board approved a proposal to acquire a “significant stake” in the electric vehicle (EV) startup in one or more tranches, in a mix of primary and secondary investments.
As part of the deal, Hero MotoCorp will pick up equity shares and Series D compulsory convertible preference shares (CCPS) in Euler Motors
for a stake of nearly 32.5% on a fully-diluted basis. In addition, the auto giant said that it may also acquire Euler shares from existing stakeholders as part of the INR 525 Cr deal.
Hero MotoCorp expects the transaction to be completed by April 2025.
In a statement, the two-wheeler maker said that the investment will help it find a “strong foothold” in the fast-growing electric three-wheeler market.
“As we strengthen and diversify our emerging mobility portfolio, this strategic 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 Hero MotoCorp in a statement.
Commenting on the deal, Hero MotoCorp’s executive chairman Pawan Munjal said, “… 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”.
The development comes a couple of months after Euler Motors announced that it has secured up to $20 Mn in debt from responsAbility Investments AG. In January itself, the Delhi NCR-based startup also sold its mobility business to EV fleet startup MoEVing for an undisclosed amount.
Founded in 2018 by Saurav Kumar, Euler Motors is an original equipment manufacturer (OEM) which designs, manufactures, sells and services electric three-wheelers. It also caters to the logistics, commercial mobility and ecommerce sector with its electric mini trucks for heavy and light loads.
It claims to have presence in more than 30 cities across India and operates more than 500 charging hubs across Delhi NCR, Hyderabad and Bengaluru. Backed by the likes of Blume Ventures, Asia-Pacific Strategic Investments, British International Investment (BII), among others, Euler Motors has raised more than $93 Mn in funding to date.
As per Hero MotoCorp’s filings, the electric three-wheeler’s turnover stood at INR 25 Cr in the fiscal year 2021-22 (FY22), which jumped to INR 49 Cr in FY23. Euler Motors’ turnover rose multifold to INR 172 Cr as of INR FY24.
As per government data, India clocked 6.91 Lakh electric three wheeler registrations in 2024, up 18% from 5.83 Lakh units in 2023. EVs accounted for 56% of the total 12.2 Lakh three-wheelers sold in the country last year. The growth has primarily been driven by factors such as increasing adoption of EVs by ecommerce platforms for last-mile delivery as well as the government’s policy boost.
