New Delhi based small business financier Hero FinCorp has secures $105m in venture funding led by ChrysCapital and Credit Suisse. Hero FinCorp provides financing to more than 2,000 small and medium-sized enterprises. It has presence in about 950 locations across India through more than 2,000 touch points, and plans to double the number of touch points by 2020.
ChrysCapital will take an 11% stake in Hero FinCorp while Credit Suisse will hold around 2.5%. The transaction values the company around Rs 5,200 crore. “The financial services market in India, particularly the NBFCs, have witnessed steep growth in recent times and it still remains largely under penetrated,” said Hero Group chairman Pawan Munjal. “With Hero FinCorp, we aim to capitalise on this opportunity.” Munjal also said that the company is focused on growing the current business and that a banking licence in the future is part of its vision. Hero FinCorp joint managing director and CEO Abhimanyu Munjal said the company aims to grow its asset book size to Rs 35,000 crore by 2020. “The fresh investment that we have received are going to significantly contribute towards our expansion plan,” he said.