Hero FinCorp Ltd., which started as the lending arm of Hero MotoCorp Ltd. three years ago, raised Rs 1,000 crore from private equity firm ChrysCapital Advisors LLP, financial services major Credit Suisse, and from its parent Hero Group, the company said in a statement.
ChrysCapital invested Rs 570 crore, Credit Suisse pitched in with Rs 132 crore, and Hero Group invested the remainder of Rs 300 crore in the latest round of fundraising, which will allow Hero FinCorp to expand its rural reach.
The financial services market in India, particularly the NBFCs, has witnessed steep growth in recent years and it still remains largely under-penetrated. With Hero FinCorp, we aim to capitalise on this opportunity by providing credit power to the financially excluded customers across the hinterlands of the country.Pawan Munjal, Chairman, Hero Group
Hero FinCorp, which is the non-banking finance arm of the Hero Group, plans to reach an asset size of Rs 35,000 crore, and 4,000 touchpoints by 2020, with an aim to venture into new spheres, such as home loans and two-wheeler finance. Currently, the company claims to have an asset size of Rs 8,000 crore.