Private equity firm ChrysCapital Advisors has invested Rs 570 crore and Credit Suisse has brought in Rs 132 crore, its most prominent equity investment in the country. The promoters of Hero Group have infused Rs 300 crore. The NBFC, which has an asset size of Rs 8,000 crore, gets one-fourth of its business through financing purchases of Hero’s two wheelers. Other segments are loans against property, home loans and loans to SMEs and emerging companies.
“We have financers financing two-wheelers more in the urban areas. So, we wanted Hero FinCorp to expand its wings in the hinterland. We want to make it a complete financial services company,” said Pawan Munjal, chairman at Hero Group. Munjal is also the CMD and CEO of Hero MotoCorp, the country’s biggest two-wheeler maker.
Backed by the strong promoters, Hero FinCorp will expand its presence from 2,000 touch points to 4,000 touch points by 2020 with an aim to grow asset size to Rs 35,000 crore. “The money raised will be used to grow asset size, invest in technology and expand the product portfolio,” Abhimanyu Munjal, joint MD and CEO at Hero FinCorp said. Abhimanyu is the son of late Raman Kant Munjal, elder brother of Pawan Munjal. The young Munjal wants to expand portfolio by venturing into used car and two wheeler loans and consumer durables financing to retail customers. Hero FinCorp is using the touch points of Hero MotoCorp to further its reach across the country.