Hero FinCorp Raises Rs 1000 Crore To Fund Expansion
This capital would be used to support the demand for customer-focused credit services over the next 12-18 months
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Hero FinCorp Limited, a non-banking financial company (NBFC) of Hero Group, on Thursday (September 15) raised over Rs1000 crore from Chrys Capital, Credit Suisse and Hero Group to fuel expansion.
This capital would be used to support the demand for customer-focused credit services over the next 12-18 months.
ChrysCapital has invested Rs 570 crore while Hero Group has made an additional investment of Rs 300 crore and Credit Suisse has participated with Rs 132 crore.
“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. Our strong social values and commitment to the development of the country inspire us to develop innovative and reliable products and services that empower customers to realise their aspirations,” said PawanMunjal, chairman of Hero Group.
Abhimanyu Munjal, joint managing director and chief executive officer of Hero FinCorp, said, “The fresh investments that we have received are going to significantly contribute towards our expansion plans. These investments endorse the solidity of our organisation’s strategy and processes and also validate the tremendous growth opportunities in the segment. Hero FinCorp is now geared-up for the next phase of growth and aims to grow its asset book to Rs 35,000 crore by year 2020.”
Hero FinCorp has grown from an asset size of Rs 300 crore in 2013 to Rs 8000 crore in 2016 and it plans to reach an asset size of Rs 35,000 crore by 2020.
The company plans to enter new product segments, such as, home loans and used two-wheeler loans and aims to further augment existing businesses, with special focus on used car finance, consumer durable and SME lending. The company also plans to introduce disruptive financial technologies into its business through partnerships with FinTech start-ups.
The NBFC unit has presence in over 950 locations across India through more than 2000 touch-points and plans to grow the touch points to 4000 by 2020.