Hero MotoCorp, the leading player in the two-wheeler market, is nearing a significant investment deal with Altigreen Propulsion Labs, a Bengaluru-based startup specializing in electric three-wheelers. The investment, which could reach up to ₹900 crore, is set to position Hero MotoCorp in the burgeoning electric three-wheeler sector, competing with established players like Mahindra & Mahindra and Bajaj Auto.
Due diligence for the investment has been completed, and if finalized, Hero MotoCorp will gain a substantial stake in the 11-year-old company. This partnership aims to accelerate Altigreen’s growth and market presence. Hero MotoCorp’s entry into this segment will diversify its portfolio into electric mobility, a sector where Bajaj Auto and Mahindra & Mahindra currently lead.
Altigreen, which had a turnover of ₹115 crore and sold 2,800 units in FY24, is set to use the new funds to launch additional models, expand its market reach, and achieve profitability goals. The company has previously raised $56 million across seed and Series A funding rounds, supported by investors including Sixth Sense, Xponentia, Reliance Industries, Accurant (US), and Momentum (Singapore).
Altigreen’s electric cargo three-wheelers address last-mile logistics needs for e-commerce and other industries. With around 5,000 vehicles sold since its inception, Altigreen plans to enhance its dealer network from 30 to 40 by the end of the year and increase its production capacity to 55,000 vehicles annually. The electric vehicle (EV) segment is expected to grow significantly, with projections indicating that EV penetration in cargo three-wheelers will rise from 14% in FY24 to 55% by FY30.
