New Delhi, Feb. 6 -- Hero MotoCorp Ltd., promoted by the Munjal family-controlled diversified Hero Group, is investing up to Rs 275 crore ($30.3 millon) in electric vehicle maker Euler Motors, deepening its bet on the electric three- and four wheeler segment.
The investment will be made in one or more tranches through a mix of primary infusion and secondary share purchases, Hero MotoCorp said in a regulatory filing. Last year, Hero MotoCorp had invested Rs 525 crore in Euler Motors, as part of its Series D funding round.
The round also saw participation from Euler's existing investor British International Investment (BII), the UK's development finance institution.
As part of the primary round, Hero MotoCorp will subscribe to Series E compulsory convertible preference shares, which will raise its stake in Euler Motors to about 36% on a fully diluted basis from the current 34.1%. The company may also acquire shares from existing shareholders as part of the same investment pool.
Hero MotoCorp said the additional investment aligns with its strategy to strengthen and diversify its emerging mobility portfolio and expand its presence in the electric commercial vehicle market.
The transaction, which will be carried out in cash, is expected to be completed by April 30, 2026.
Euler Motors is an associate company of Hero MotoCorp, and the investment will be made on an arm's-length basis, the filing said.
Euler Motors, which operates in 64 cities across India, designs, manufactures and services electric three- and four-wheelers. It also counts Blume Ventures, Athera Partners, Asian Development Bank Ventures, and Piramal Alternatives India Access Fund as its investors.
Euler competes against Altigreen, Mahindra Electric, Piaggio, Tata Motors, Omega Seiki Mobility, YC Electric Vehicle, Saera Electric Auto, Lohia Auto, Atul Auto, and other Indian three-wheeler EV makers.
The company reported operating revenue of Rs 191 crore for the financial year ended March 2025, up from Rs 172 crore a year earlier. It reported a net loss of Rs 200 crore in FY25, down from Rs 227 crore in the fiscal before, according to VCCEdge, the data-intelligence platform of VCCircle.
Published by HT Digital Content Services with permission from VC Circle.