Hero Electronix, a subsidiary of the Hero Group, is actively seeking external investment by the end of this year as part of its strategy to double its revenue in the coming year. The company’s brand, Qubo, specializes in designing and marketing products in the smart home and smart mobility segments, offering a range of products that include home cameras, smart locks, and dash cameras. Qubo, which initially operated as a direct-to-consumer (D2C) brand, is also rapidly expanding its presence offline.
Ujjwal Munjal, founder director of Hero Electronix and managing director of Rockman Industries (another Hero Group entity specializing in aluminium die castings), disclosed that Hero Electronix had already invested ₹200 crore in the eight-year-old startup until the previous year and was planning to invest an additional ₹50 crore in it this year.
Munjal explained, “Now that we have reached 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.” Although the business has not yet turned a profit, it aims to break even within six to eight quarters.
Nikhil Rajpal, the CEO of Hero Electronix, emphasized that the company operates as a tech-focused entity with expertise in both software and hardware design. Rather than manufacturing its products, the company collaborates with contract manufacturers across India. Hero Electronix projects a revenue of ₹130 crore for FY24 as it continues to expand its product offerings and market presence.
Ujjwal Munjal is the son of Suman Kant Munjal, chairman of Hero Electronix and auto component maker Rockman Industries. The Delhi-based company ventured into the electronics sector in 2015 and has been actively expanding its portfolio through strategic acquisitions. In 2015, it acquired a majority stake in Mybox Technologies Pvt. Ltd, a manufacturer of set-top boxes in India. In 2016, Hero Electronix acquired a significant minority stake in Tessolve Semiconductor, a Bengaluru-based semiconductor test engineering services company.
The decision to seek external investment aligns with Hero Electronix’s growth aspirations and its focus on developing innovative technology solutions for the smart home and smart mobility sectors. As it continues to expand its product range and market reach, securing external funding will play a crucial role in accelerating its growth and achieving its revenue targets.
