In a significant development for India’s electric mobility landscape, commercial EV manufacturer Euler Motors has raised INR 638 crore (~USD 75 million) in its Series D funding round, led by Hero MotoCorp, the world’s largest two-wheeler maker. The investment marks Hero’s strategic foray into the electric three- and four-wheeler segments, expanding its reach in the rapidly evolving EV ecosystem.
Euler Motors Series D round also saw participation from British International Investment (BII) — the UK’s development finance institution and an existing backer of Euler — pushes Euler’s total funding to INR 1,420 crore.
Euler Motors Series D Round: Strategic Intent
Hero MotoCorp’s participation in this round is not merely financial but also a calculated strategic move. The company had previously announced plans to invest up to INR 525 crore in Euler Motors for a 32.5% stake on a fully diluted basis. With this investment, Hero joins Euler’s cap table at a crucial juncture when traditional auto giants are looking beyond the two-wheeler category to ride the next wave of electric mobility.
“This strategic investment allows Hero MotoCorp to venture into a rapidly growing electric three- and four-wheeler market, while unlocking adjacent business opportunities,” said Dr. Pawan Munjal, Executive Chairman, Hero MotoCorp.
Hero already holds a 30.9% stake in Ather Energy, another electric mobility player, but did not offload shares during Ather’s recent IPO — signaling its long-term play in the space.
Use of Funds
Euler Motors stated that the fresh infusion will be directed toward expanding its sales and service network and accelerating new product development. The firm currently has a presence in 40 Indian cities and plans to double that footprint to 80 cities in the near term. The goal is clear: gain a dominant share in India’s fast-growing commercial EV market.
“With this fresh capital and strategic backing, we are poised to accelerate our scale, continue innovating, and move closer to becoming India’s No. 1 commercial EV brand,” said Saurav Kumar, Founder and CEO of Euler Motors.
Euler’s current product lineup includes:
- HiLoad EV: A robust electric three-wheeler used extensively across logistics and e-commerce sectors.
- StormEV: Claimed to be India’s first four-wheeler light commercial EV equipped with ADAS (Advanced Driver Assistance Systems), launched earlier this year.
Backing from a Global Investor Consortium
The round also included previous investors such as:
- Blume Ventures
- Athera Partners
- Asian Development Bank Ventures
- Piramal Alternatives India Access Fund
- Caladium Investment (GIC) — contributed ₹32 crore ($3.76 million)
- BII — added INR 96 crore (USD 11.3 million)
Euler had earlier raised USD 20 million (~INR 170.86 crore) in debt funding in January 2025 from responsAbility Investments AG, further bolstering its production and R&D capabilities.
Revenue Surge Amid Operating Losses
The fiscal performance of Euler Motors reflects both promise and challenges. For FY24, the company:
- Tripled its revenue from INR 62 crore in FY23 to INR 189 crore
- Reported a net loss of INR 227 crore
Despite the losses, the revenue jump signals strong adoption, especially in logistics and e-commerce segments. Euler currently holds an estimated 11% market share in India’s electric three-wheeler cargo segment and aims to raise it to 15% over the coming quarters.
A Competitive EV Landscape
Euler competes with several players in the commercial EV space, including:
- Altigreen
- Mahindra Electric
- Kinetic Green
- Piaggio
- Tata Motors
However, Euler’s focus on purpose-built commercial EVs, robust R&D, and aggressive geographic expansion may give it an edge as the sector matures.
Conclusion
Euler Motors Series D round — led by an industry giant like Hero MotoCorp — represents more than a routine fundraise. It underscores a larger shift in India’s mobility narrative: the rise of electric commercial vehicles as a cornerstone of sustainable transportation. With new capital in hand, a diversified investor base, and a clear product roadmap, Euler Motors appears well-positioned to scale new heights in the coming decade.