"Hero Electronix to Inject ₹200 Crore into Product Range and Market Expansion"

Qubo, the consumer electronics brand, which is a subsidiary of Hero Electronix, has unveiled its plans to raise ₹200 crore over the next year to facilitate the expansion of its product portfolio and explore new international markets, extending beyond the borders of India.

In recent years, the company has successfully raised ₹200 crore to introduce a range of automotive products, including dashcams, tire inflators, smart door locks, and intelligent security cameras designed for residential use.

Ujjwal Munjal, Vice-Chairman of Hero Electronix, shared insights during the product launch event, stating, "So far we have invested around ₹200 crore-plus, and we anticipate that another ₹200 crore will be invested in this sector in the next year or two. We are actively seeking funding from institutional investors to support Qubo's next phase of growth. It was crucial for us to demonstrate that an Indian consumer smart tech brand can be developed right here."

He emphasized that the company has successfully overcome the challenge of creating high-quality products capable of competing with established global brands. As a result, Qubo has been well-received in the market, leading to a remarkable 2X growth last year. The company is on track to achieve double the revenue, reaching ₹260-270 crore this year.

Nikhil Rajpal, Chief Executive Officer of Hero Electronix, elaborated on the company's strategy, saying, "Now is the time for us to accelerate further growth. The new investment will be allocated towards brand building, expansion, the development of new products, and venturing into international markets. While we initially began our international journey in Dubai, the onset of the Covid-19 pandemic disrupted our plans, and we are now actively exploring new markets."

Rajpal also noted that the contribution of the automotive product range to the company's revenue currently stands at 35-40%, and it is anticipated to increase to 50% over the next five years. The remaining revenue is generated from home products.

During the product launch event, Qubo 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 come equipped with advanced features, including real-time vehicle tracking and AI-based accident detection capabilities, which instantly alert family members or emergency contacts in the event of an unexpected mishap.

HBL