Hero MotoCorp’s financial arm, Hero FinCorp, has raised $30.1 million in funding ahead of its planned initial public offering (IPO). The funding round was led by a group of investors, including Multiples Alternate Asset Management, a private equity firm. The investment is a significant boost for Hero FinCorp, which is the non-banking financial company (NBFC) arm of Hero MotoCorp, India’s largest two-wheeler manufacturer.
The funds raised will be used to expand Hero FinCorp’s operations and strengthen its position in the Indian financial services market. The company provides financing options to customers purchasing Hero MotoCorp’s vehicles, as well as other financial products and services. With this investment, Hero FinCorp aims to increase its loan book and expand its reach to more customers.
The funding round is also seen as a pre-IPO placement, as Hero FinCorp is expected to launch its IPO in the near future. The company has been preparing for its public listing for some time and has been working on strengthening its financials and expanding its operations. The IPO is expected to provide a significant exit opportunity for the company’s existing investors, while also raising fresh capital to fund its growth plans.
Hero FinCorp’s business has been growing rapidly in recent years, driven by the increasing demand for two-wheelers in India. The company has been expanding its product offerings and strengthening its distribution network to cater to the growing demand. With the new funding, Hero FinCorp is expected to further accelerate its growth plans and consolidate its position in the Indian financial services market.
The investment in Hero FinCorp is also a reflection of the growing interest in India’s financial services sector, particularly in the NBFC space. Many private equity firms and investors have been investing in Indian NBFCs, driven by the sector’s growth potential and the increasing demand for financial services in the country.
Overall, the funding round is a significant development for Hero FinCorp and provides a boost to its growth plans. The company’s planned IPO is expected to be a major event in the Indian capital markets, and the pre-IPO placement is seen as a positive development for the company’s public listing plans. With its strong parentage and growing business, Hero FinCorp is well-positioned to capitalize on the opportunities in the Indian financial services market.