Hero MotoCorp Ltd., India’s largest two-wheeler maker by sales, is investing in the electric mobility arm of ride-hailing company Ola, said by Pawan Munjal, Chairman of Hero MotoCorp Ltd. Munjal will follow Ratan Tata, Chairman Emeritus of Tata Group, as an investor in Ola Electric. Munjal has been discussing the potential investment over the last few months with Arun Sarin, a former Chief Executive of Vodafone Group Plc, who was appointed an independent director of Ola Electric in May.
Sarin, an investor in Ola and Ola Electric, is also a mentor and advisor to Ola Electric. Moreover, Tata, Ola Electric, incorporated on February 2017, counts venture capital funds SoftBank Group Corp., Tiger Global and Matrix Partners India as its investors. In July, the startup joined the unicorn club, after receiving funds worth $250 million from the Japanese investment bank and venture capital fund SoftBank.
Pawan Munjal may be the next big investor after Ratan Tata to invest in Ola Electric. An investment in Ola Electric Mobility Pvt. Ltd would be a major endorsement of the future potential of electric mobility in India at a time when Prime Minister Narendra Modi’s administration is pushing automakers and cab aggregators to shift to electric vehicles.