Euler Motors has raised 638 crore rupees (US$74.6 million) in series D funding led by Hero MotoCorp, with participation from British International Investment.

The funds will be used to expand sales and service networks and develop new commercial EV products.

This round brings Euler Motors’ total funding to around 1,420 crore rupees (US$166.2 million) to date.

Earlier this year, it also secured up to US$20 million in debt from responsAbility Investments AG for R&D and production.

Hero MotoCorp’s investment signals its entry into the electric three- and four-wheeler segment.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ India’s commercial EV sector is experiencing unprecedented transformation with three-wheelers leading

India’s electric three-wheeler segment has reached a tipping point, with over 50% of all three-wheelers sold in 2024 expected to be electric, making it the fastest-transitioning segment in India’s automotive landscape1.

Euler Motors’ journey represents this rapid evolution, growing from a startup with $2 million in initial funding in 2019 to now having raised approximately Rs 1,420 crore (~$170 million) in total funding2, 3.

This acceleration aligns with broader market projections that forecast India’s overall EV market to expand from $3.21 billion in 2022 to $113.99 billion by 2029, representing a staggering 66.52% CAGR1.

The focus on commercial vehicles stems from their operational economics, with Euler’s vehicles projected to cost around Rs 20 for 100 km compared to Rs 350 for conventional vehicles, creating compelling business cases for fleet operators2.

Government policies like the FAME scheme have specifically targeted commercial vehicles for electrification, recognizing their higher utilization rates and greater environmental impact per vehicle4.

2️⃣ Traditional automotive giants strategically entering commercial EV space through investments

Hero MotoCorp’s Rs 525 crore investment for a 32.5% stake in Euler Motors represents a calculated entry into the electric commercial vehicle segment, diversifying beyond their traditional two-wheeler stronghold5.

This investment approach reflects a trend across India’s automotive landscape where established manufacturers invest in EV startups rather than building capabilities entirely in-house6.