Hero Motors Limited, the flagship auto-components company of the Hero Motors Company (HMC) Group, with a focus on gears, transmissions, and bike powertrains, 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 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 and expanding its presence globally by opening new facilities.
Pankaj Munjal, Chairman, HMC, said, “This fundraise is testimony to the brilliant platform we have built over the last years having deep relationships with the OEMs from across the world.”
Sridhar Narayan, Managing Partner, GEF Capital, 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.”
Commenting on the partnership, Amit Gupta, MD & CEO, Hero Motors, added, “The company has been consistently growing at over 50% 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.”
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