Hero Motocorp and Gogoro Partnership: $285M Investment

Gogoro Secures Additional Funding for Expansion

Gogoro, the Taiwan-based firm renowned for its electric smartscooters and innovative battery swapping system, has bolstered its recent funding round. Strategic partner Hero MotoCorp, along with Engine No. 1, an activist investment group, and another investor, have joined the PIPE investment.

This influx of capital elevates the total funding to $285 million, an increase from the previously announced $257 million.

PIPE Investment Details

The PIPE (private investment in public equity) round was oversubscribed and features investments from prominent entities. These include Foxconn (Hon Hai), GoTo, Temasek, and Generation Investment Management, among others.

This funding supplements the $345 million expected from Poema Global, the special purpose acquisition company with which Gogoro is slated to merge in the first quarter of 2022.

Company Statements on Funding

“This additional funding, alongside our recent F-4 filing, maintains our projected timeline for completion in Q1,” stated Bruce Aitken, Gogoro’s chief financial officer.

“Our PIPE investment comprises three distinct investor groups: existing supporters reinforcing their belief in our vision, new strategic investors facilitating our growth, and new institutional investors.”

Aitken continued, “The inclusion of Hero MotoCorp and Engine No. 1 further validates our strategic direction and future plans. Hero MotoCorp serves as a crucial OEM and expansion partner, while Engine No. 1 will offer guidance on maximizing economic value through environmental responsibility.”

Strategic Partnerships

In April of the previous year, Gogoro established a partnership with Hero MotoCorp, a leading motorcycle manufacturer in India and globally. This collaboration aims to establish a joint battery-swapping network within India.

Furthermore, HeroMotoCorp intends to introduce electric two-wheelers utilizing Gogoro’s technology under its own brand.

Market Position and Global Ambitions

Currently, Gogoro dominates the Taiwanese market, registering over 63,000 e-scooter registrations in the first eleven months of 2021.

Aeon, holding the second position, recorded just over 7,000 registrations during the same period; notably, Aeon is also a partner of Gogoro.

Gogoro is now focused on expanding its battery swapping infrastructure internationally, relying on partnerships with local vehicle manufacturers like Hero, as well as Chinese companies Yadea and DCJ.

CEO Insights on Partnerships

“As we venture into these substantial markets, securing allies is paramount,” explained Horace Luke, founder and CEO of Gogoro, in an interview with TechCrunch.

“It’s a significant distinction between simply agreeing to a partnership and investing capital to guarantee the resources needed to successfully enter a new market.”

“Having vehicle partners invest directly streamlines these conversations considerably.”

Financial Outlook

The new capital will also assist Gogoro in maintaining momentum as it expands into new territories.

Despite accumulating over $1 billion in revenue and exceeding 450,000 battery swapping subscribers over the last five years, the company has yet to achieve profitability.

“We have not yet reached bottom-line profitability,” Luke admitted. “Further scaling is required to achieve breakeven, and increased capital will be instrumental in reaching that goal.”