"Hero Electronix Announces ₹200 Crore Investment for Product Range Expansion and Market Expansion"

Consumer electronics brand Qubo, a subsidiary of Hero Electronix, has unveiled ambitious plans to raise ₹200 crore within the next year. This substantial investment will be directed towards expanding the company's product range and venturing into new international markets beyond India.

Qubo has been making significant strides in recent years, having already secured ₹200 crore in funding. This capital infusion enabled the brand to successfully launch a range of automotive products, including dashcams, tyre inflators, smart door locks, and smart security cameras for homes.

Ujjwal Munjal, Vice-Chairman of Hero Electronix, expressed the company's commitment to growth and development. He stated, "So far we have invested around ₹200 crore plus, and we expect in the next year or two, another ₹200 crore to be invested in this space. We are looking at raising this money from institutional investors for Qubo's next phase of growth, and I think it was very important for us to prove to the world that an Indian consumer smart tech brand can be built out of here."

Munjal emphasized that Qubo has overcome challenges and demonstrated the ability to create high-quality products that can compete effectively with established brands. This success has translated into robust acceptance in the market, leading to a remarkable 2X growth rate last year. The company is poised for continued expansion, with expectations of doubling its revenue to ₹260-270 crore this year.

Nikhil Rajpal, Chief Executive Officer of Hero Electronix, discussed the company's growth strategy, highlighting their intent to explore new international markets. "Now is the time for us to accelerate further growth. The new investment will be spent on brand building, growth, new product development, and expansion into new international markets. We initially started in Dubai, but due to the pandemic, our efforts were disrupted, so we are now actively seeking new markets," Rajpal said.

Looking ahead, Rajpal suggested that the automotive product range, which currently accounts for 35-40% of their revenue, may potentially increase to 50% in the next five years. The remainder of their revenue is derived from home products.

As part of their product expansion, Qubo recently introduced two new offerings - GPS trackers for both four-wheelers and two-wheelers, starting at ₹1,799, and dashcams for cars, starting at ₹3,490. These GPS trackers boast advanced features such as real-time vehicle tracking, instant alerts for unusual activities, and AI-based accident detection, which sends alerts and calls emergency contacts in case of a mishap. These innovative products align with Qubo's commitment to providing cutting-edge technology solutions for consumers.

Qubo's strategic investment and product diversification initiatives underscore its determination to establish itself as a prominent player in the global consumer smart tech market.

HBL