KKR & Co Inc of the United States and Hero Group of India have agreed to invest $450 million in the motorbike maker’s renewable energy subsidiary, the firms said on Tuesday, as the Indian firm seeks to increase its renewable energy capacity.
The firms announced today that KKR and Hero Group will invest $450 million in Hero Future Energies (HFE), Hero Group’s renewable energy unit.
This investment would allow HFE to gradually increase its renewable energy capacity and capabilities across technologies such as solar, wind, battery storage, and green hydrogen, as well as enter new markets.
“HFE’s clean energy solutions play an important role in helping companies decarbonize as energy demands continue to grow. We look forward to working closely with HFE’s management team and existing investors, including the Hero Group and IFC, to help HFE achieve its next phase of growth and contribute to the energy transition efforts in India and globally,” said Hardik Shah, Partner at KKR.
With KKR’s investment, HFE’s valuation has surpassed the $1 billion mark. Apart from the Hero Group, the International Finance Corporation (IFC) is a shareholder in the firm, as is Masdar, also known as Abu Dhabi Future Energy Co., which purchased a 20% stake in the company for $150 million in November 2019, valuing it at $750 million.
Rahul Munjal, Chairman, Hero Future Energies, said, “With this investment, Hero Future Energies will work to accelerate India’s energy transition and contribute to the Indian government’s target of generating half the country’s power from non-fossil fuel sources by 2030.”
With KKR’s investment, HFE’s valuation has surpassed the $1 billion mark. Apart from the Hero Group, the International Finance Corporation (IFC) is a shareholder in the firm, as is Masdar, also known as Abu Dhabi Future Energy Co., which purchased a 20% stake in the company for $150 million in November 2019, valuing it at $750 million.
