Euler Motors Secures Rs 638 Crore in Series D Financing

Commercial electric vehicle manufacturer Euler Motors is currently in the process of raising Rs 638 crore (approximately $75 million) in its Series D funding round, spearheaded by Hero MotoCorp. The company has already disclosed a $60 million investment from Hero MotoCorp, with expectations of additional contributions from other existing investors.

This funding will provide essential support for Euler, which has been actively seeking financial backing for an extended period; however, the Delhi-based firm will have to accept a flat valuation during this funding round.

To gain deeper insights into Euler Motors’ recent funding activities, Startup Superb has examined the company’s regulatory documents to reveal important information such as the funding round’s distribution, shareholding setup, and the current market valuation.

The board at Euler Motors has approved a special resolution to issue 8,33,047 Series D Cumulative Compulsorily Convertible Preference Shares along with 10 equity shares at an issue price of Rs 7,659, thereby raising Rs 638 crore or $75 million.

Hero MotoCorp led this investment round with Rs 510 crore ($60 million), while British International Investment and Caladium Investment (GIC) are set to contribute Rs 96 crore ($11.3 million) and Rs 32 crore ($3.76 million), respectively.

According to Startup Superb’s analysis, the company led by Saurav Kumar is projected to have a valuation of around Rs 1,496 crore ($176 million) following the share allotment, indicating a flat valuation compared to the preceding funding round.

As per various sources from startup data intelligence platforms, Euler Motors has successfully raised an impressive total of approximately $128 million before this funding round, encompassing both debt and equity. Upon completion of the Series D round, Hero MotoCorp will emerge as the largest external shareholder in the company, holding a 34.10% stake, while Caladium Investment (GIC) and British International Investment will retain 18.00% and 10.40% stakes, respectively.

Established in 2018, Euler Motors is a rising star in the commercial electric vehicle space, focusing specifically on the production of three-wheelers. The company’s electric vehicle fleets have been deployed by prominent clients including BigBasket, Ecom Express, Amazon, and Udaan.

Year-over-year, Euler has recorded a notable increase in its operating revenue, experiencing more than a threefold growth to reach Rs 189 crore in FY24, up from Rs 62 crore in FY23. Nonetheless, the firm also reported a loss of Rs 227 crore during the same financial year. The latest fiscal year figures (FY25) are yet to be revealed by the firm. Euler competes in the market with players like Altigreen, as well as established giants such as Mahindra Electric, Piaggio, Kinetic Green, Tata, and others.

The three-wheeler segment has notably evolved at its own pace. Similar trends can be observed in the electric variant, which has not witnessed the same influx of new entrants as the two-wheeler market. Established manufacturers enjoy healthier profit margins, and Euler has demonstrated its capacity to compete effectively in this market. The sustained investment interest from Hero MotoCorp is indicative of the challenges Euler currently faces, albeit at a flat valuation.

With electric vehicle mandates gaining momentum across multiple states and major buyers being receptive to favourable deals, Euler is well-positioned to enhance its market presence further. The company’s success will largely depend on its capability to innovate and develop new products that cater to a wide array of market needs in terms of size and features.