Hero Group's Consumer Electronics Business To Seek ₹200 Crore External Funding
Date
10/5/2023 2:02:26 PM
(MENAFN- Live Mint) "New Delhi: Hero Electronix, a subsidiary of the Hero Group, said it will look to raise funds from external investors by the end of the year as it looks to double its revenue by next year. Hero Electronix's brand Qubo designs and markets products in the smart home and smart mobility segments, including home cameras, smart locks and a range of dash cameras. The direct-to-consumer (D2C) brand is also rapidly expanding its presence offline.\"Hero Electronix had invested ₹200 crore in the eight-year old startup until last year, and will invest another ₹50 crore in it this year,\" said Ujjwal Munjal, founder director of Hero Electronix and managing director of Rockman Industries, a Hero Group entity that manufactures aluminium die castings.\"Now that we have got to this size and scale and have proven our technology with our products, it is time to accelerate further. The business will need more investment going forward and we are going to start looking at potential investments into this business. We would like to start the process towards the end of this year. We'll raise about ₹150 crore to ₹200 crore to start with, and then accelerate from there\", Munjal told Mint. The business is yet to turn a profit but is looking to break even in six to eight quarters, he added.\"We are not a manufacturing company. We are a tech company with competence in software and hardware design,\" said Nikhil Rajpal, chief executive officer, Hero Electronix. The company works with contract manufacturers across the country, and projects a revenue of ₹130 crore in FY24 Munjal is the son of Suman Kant Munjal, chairman of Hero Electronix and auto component maker Rockman Industries. The Delhi-based company entered the electronics sector in 2015. It acquired a majority stake in Mybox Technologies Pvt. Ltd, which makes set-top boxes in India, that year. In 2016 it acquired a significant minority stake in Bengaluru-based semiconductor test engineering services company Tessolve Semiconductor.
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