Auto component maker Hero Motors raises growth capital from GEF Capital Partners • EVreporter

Hero Motors Limited, the flagship auto-components company of the HMC (Hero Motors Company) Group, has raised growth equity capital from private equity firm GEF Capital Partners and its LPs for a minority stake. 

The company will use these funds to further augment its growth with a significant focus on serving the original equipment manufacturers in the electric mobility sector by setting up additional technology centres for Research & Development along with expanding its presence globally by opening new facilities to cater to its customers’ growing demands.

The company focuses on Gears, Transmissions, and Bike Powertrains and has multiple manufacturing facilities around the world. Commenting on the partnership, Mr Amit Gupta, MD & CEO of Hero Motors Ltd., shared, “This fundraise will help the company further augment its growth trajectory by enabling it to expand its network of facilities and allocate more capital towards R&D to be able to provide innovative products and solutions to our customers. The company has been consistently growing at over 50 per cent CAGR in the last few years, and the capital will be used to invest in further strengthening the company’s market position in its relevant markets and especially the fast-growing electric vehicle components space.”

GEF Capital’s Managing Partner, Mr Sridhar Narayan, said, “Hero Motors is the largest manufacturer of e-bike components in India and is actively transitioning its Gears & Transmission business towards electric vehicles by acquiring capabilities across product engineering and process engineering. We are excited to partner with Hero Motors in its next phase of organic and inorganic growth”.