[Funding alert] Non-bank lender Hero FinCorp raises $267M from Apollo, Hero MotoCorp, others

The Delhi-based non-banking finance company plans to use its latest fundraise to support its growth strategy as the company continues to further expand its product offerings across India’s retail, SME, and corporate lending landscape.
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Delhi-based Hero FinCorp, a non-banking finance company (NBFC), has raised Rs 2,000 crore ($267 million) from Apollo, Hero MotoCorp, and others.

Apollo Global Management, through its Hybrid Value Fund, has committed Rs 937 crore ($125 million), along with Hero MotoCorp (a key sponsor of Hero FinCorp) committing Rs 700 crore ($94 million), the balance being contributed by others. 

With this fresh capital infusion, the net worth of the company, which is rated AA+ by ICRA and CRISIL, will be Rs 6,782 crore ($900 million) on a consolidated basis, the company said. The fundraise was approved by the boards of Hero MotoCorp and Hero FinCorp in January 2022. 

Abhimanyu Munjal, Joint Managing Director and CEO, Hero FinCorp, said,

“This fresh capital infusion will fuel our growth to $10 billion in assets, and enable us to serve over 15 million customers by FY-25. This is in keeping with our mission of empowering every Indian’s dream of upward mobility.” 

Originally founded in 1991 as Hero FinLease Limited, Hero FinCorp started expanding in 2012, and has since grown its loan book from Rs 300 crore to approximately Rs 30,000 crore over the past 10 years.

The company offers a wide range of products and services across retail, SME, and corporate lending segments. It claims to serve over seven million customers through its over 4,000 touchpoints, spread across more than 2,000 locations and a team of almost 10,000 individuals.

Matt Michelini, Partner, Head of Asia Pacific and Co-Head, Apollo, said,

“We are pleased to support Hero FinCorp through our Hybrid Value platform, helping the business accelerate its  growth in an industry which we believe has significant tailwinds in India. Our team is excited to strategically partner with the Munjal Family to support them in scaling their financial services business,  one of the Hero Group’s leading franchises.”
Edited by Kanishk Singh

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