Hero FinCorp

Hero FinCorp Ltd

Industry	Financial services
Founded	1991
Headquarters	New Delhi , India
Key people	Abhimanyu Munjal, CEO, Ajay Sahasrabuddhe, COO- Retail Finance, Sajin Mangalathu, Head of Technology and Operations
Products	Two Wheeler Loans Loan Against Property SME & Commercial Loans
Revenue	12.7 crore (2016-17)
Rating	AA+ / Stable
Website	Hero Fincorp

Hero FinCorp, an associate company of Hero MotoCorp, is an Indian Non-banking financial company (NBFC). The company is currently engaged in consumer finance businesses and commercial lending. Consumer Finance includes financing Hero MotoCorp Two Wheeler, Loyalty Customer Loans (top up loans for existing customers) and providing Loans against property. On the commercial lending side it provides Indian corporates with a wide portfolio of financing products which include working capital loans, machine loans among others. It is a captive finance company of Hero MotoCorp Ltd.

The company was launched in 1992 as Hero Honda Finlease Ltd by extending working capital loans and medium-term finance to component suppliers and dealers of parent firm Hero MotoCorp, then called Hero Honda Motors Ltd.^[1]

In 2011, as Hero Honda Motors was restructured, the company was renamed Hero FinCorp and acquired its present form. By April 2013, the company began giving two-wheelers loans to customers. In 2014, it ventured into loans against property, loans for small and medium enterprises and commercial loans.^[2]

Hero FinCorp provides financing for purchase of Hero MotoCorp two wheelers. The firm claims to have over 350,000 active two-wheeler customer loans in June 2015.^[2] It plans to be present in over 730 Hero MotoCorp dealerships by end of March 2016.

Hero FinCorp provides financing options for its existing customers who have availed loans to purchase two-wheelers from Hero MotoCorp. Customers with good track record of repayment are offered a Top-up Loan, called Loyalty Personal Loan (LPL). Fulfillment through the diverse dealership network of Hero MotoCorp combined with a wide front office network is enabled.

The company has recently started financing of used cars for both salaried and self-employed individuals. The company offers customizable tenures and payment options.

^[3]

The company provides loans against property to corporates, partnership firms and self-employed individuals for up to 15 years with customizable interest rates.^{[citation needed]}

1. Bill Discounting
2. Working Capital Term Loan
3. Working Capital Demand Loan
4. Term Loan
5. Project Finance
6. Acquisition Financing
7. Machine Term Loan
8. Medical Equipment Financing
9. E-commerce Dealer Financing
10. Hero MotoCorp Dealer Financing

In early 2020, the company had launched SimplyCash and entered the instant cash loan segment.^[4] Millennials across 90 cities in India could download the app and avail instant cash loan as per their need.^[5][6][7][8]

Hero FinCorp recorded a turnover of Rs.298.62^[2] crore in 2014–15.

The company has been rated as AA+ / stable by rating agencies such as CRISIL^[9] and ICRA.^[10]

External Funds Raised:

In September 2016, Hero FinCorp announced that they have raised about INR 1002 crore from internal as well as external sources.

Around INR 702 was raised from ChrysCapital, a private equity firm, and Credit Suisse, a Swiss financial services firm. The remaining INR 300 Crore, was raised from the Hero Group.^[11]

ChrysCapital will take an 11% stake in Hero FinCorp while Credit Suisse will hold around 2.5%. This transaction had valued the company around INR 5,200 crore.

The funds will be deployed to help the company achieve its growth strategy over the next 12 to 18 months. The strategy entails entering new product segments, such as home loans and used two-wheeler loans and by further augmenting existing businesses, with special focus on used car finance, consumer durable and SME lending.^[12]

Hero FinCorp has achieved Rs.6,400 crore loan book by March 16.

• Hero MotoCorp

• Hero FinCorp at Bloomberg
• News on Hero FinCorp at Mint