Hero FinCorp raises $267 million from Apollo, Hero MotoCorp, others
Summary
Hero FinCorp, a privately owned non-banking finance companies (NBFC) on Monday said it has raised Rs 2,000 crore ($267 million) from global alternative asset manager Apollo, Hero MotoCorp, and other investors.Apollo, through its hybrid value fund, has committed 937 crore ($125 million) along with Hero MotoCorp (a key sponsor of Hero FinCorp) committing 700 crore ($94 million), the balance being contributed by others.The investment is expected to close by April 2022.With this fresh capital infusion, the net worth of the company, which is rated AA+ by ICRA & CRISIL, will be 6782 crore ($900 million) on a consolidated basis.The fundraise was approved by the boards of Hero MotoCorp and Hero FinCorp in January 2022, as per the press note.The latest fundraise is expected to support Hero FinCorps growth strategy as the company continues to further expand its product offerings across Indias retail, SME, and corporate lending landscape.Announcing this, Abhimanyu Munjal, joint managing director & CEO, Hero FinCorp, said this fresh capital infusion will fuel our growth to USD 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 Indians dream of upward mobility. I am excited to partner with Apollo in this journey as they bring significant experience and relevant domain knowledge; and I am sure this strategic partnership would be mutually beneficial to both groups. "While Matt Michelini, partner, head of Asia Pacific & co-head of Hybrid Value at 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 Groups leading franchises."