Two people with knowledge of the situation say that Euler Motors, a manufacturer of commercial electric vehicles, is in negotiations to raise as much as USD 50 million in its Series D round, which is being led by Hero MotoCorp.
In an extended Series C round led by new investor Piramal Alternatives India Access Fund, the company raised USD 24 million in May 2024. Blume Ventures and British International Investment, two previous investors, also took part. One of the sources, who asked to remain anonymous because the discussions are still private, stated, "Hero MotoCorp will lead the round along with existing investors including Caladium Investments (GIC)."
Sources claim that the round is still open and that the company could raise anywhere from $45 to $50 million. Last month, the Delhi-based business raised $20 million to pay off its debt from responsAbility Investments AG. Euler has raised more than USD 110 million and is currently valued between $160 and $170 million, according to a credible startup data intelligence platform. Hero MotoCorp, GIC, and Euler did not respond to inquiries until the story was published.
According to Euler Motors, which was founded in 2018 by Saurav Kumar, its commercial electric vehicles have transported more than 45 million kilometers of cargo overall. With a range of 170 kilometers, the company's flagship model, the HiLoad EV, is said to be the most potent electric cargo three-wheeler.
Euler Motors' operating revenue increased threefold to Rs 189 crore in FY24 from Rs 62 crore in FY19 for the fiscal year that ended in March 2024. The company reported a net loss of Rs 226.9 crore for FY24. The company increased its presence from five to twenty-two cities and sold 3,700 vehicles in FY24.
Along with well-known companies like Mahindra Electric, Piaggio, Kinetic Green, Tata, and others, Euler Motors faces competition from Altigreen in the electric three-wheeler market. Notably, Hero MotoCorp was allegedly in negotiations to invest Rs 900 crore in Altigreen, a startup based in Bengaluru.
Although Hero MotoCorp's entry would undoubtedly cause some people to take notice, the choice is not as shocking as it first appears. Now that the three-wheeler commercial category is aiming to become EV-led, Hero MotoCorp will consider it worth a second look, opening up new opportunities for numerous players. Hero's $5 billion balance sheet could easily support a stake in Euler before making the strategic decision to go large, given its 40% stake in two-wheeler EV company Ather. However, it is a very alluring prospect for those who observe the industry.
