Euler Motors in Talks to Raise $50 Million Series D Funding

Euler Motors, a manufacturer of commercial electric vehicles, is currently negotiating to secure up to $50 million in its Series D funding round, which is being led by Hero MotoCorp. This information comes from two insiders who wished to remain anonymous.

In May 2024, Euler Motors successfully raised $24 million during an extended Series C funding round, with new investor Piramal Alternatives India Access Fund taking the lead, alongside contributions from existing investors British International Investment and Blume Ventures.

One source indicated that Hero MotoCorp is spearheading this funding round along with prior investors such as Caladium Investments. The full round has yet to be subscribed, with estimations suggesting that the final amount could range between $45 million and $50 million.

Last month, the Delhi-based company also secured $20 million in debt funding from responsAbility Investments AG. Startup data intelligence platforms indicate that Euler Motors has raised more than $110 million to date and has an estimated valuation of between $160 million and $170 million.

Attempts to reach Euler, Hero MotoCorp, and GIC for comment went unanswered prior to the release of this article.

Euler Motors’ Milestones and Growth

Founded in 2018 by Saurav Kumar, Euler Motors states that its commercial electric vehicles have travelled over 45 million kilometers for goods transport. Their flagship product, the HiLoad EV, is promoted as the most powerful electric cargo three-wheeler, featuring a range of 170 kilometers.

For the fiscal year ending in March 2024, Euler Motors achieved a remarkable growth in its operating revenue, which surged to Rs 189 crore in FY24 from Rs 62 crore the previous year, marking a threefold increase. However, the company did register a net loss of Rs 226.9 crore within the same fiscal period. Euler Motors sold 3,700 vehicles in FY24 and expanded its market presence from five to 22 cities.

Competition in the Electric Three-Wheeler Market

In the competitive landscape of electric three-wheelers, Euler Motors finds itself up against not only Altigreen but also established manufacturers like Mahindra Electric, Piaggio, Kinetic Green, Tata, among others.

It has been reported that Hero MotoCorp is also exploring an investment of Rs 900 crore in Bengaluru-based startup Altigreen.

Hero MotoCorp’s Strategic Move

The potential involvement of Hero MotoCorp is certainly noteworthy, although not entirely surprising. With plans to pivot towards electric vehicles, Hero MotoCorp may see the commercial three-wheeler segment as an area requiring reevaluation, thereby creating new opportunities for various players. Holding a 40% stake in two-wheeler EV company Ather, the substantial $5 billion balance sheet of Hero provides ample room for investment in Euler Motors, as they ponder a major strategic decision. For those monitoring the industry, this indeed presents an intriguing scenario.