IFC proposes to extend $100m loan to ChrysCapital-backed Hero FinCorp

The International Finance Corporation (IFC), a part of the World Bank Group, has proposed to invest up to $100 million in Indian non-bank financial company Hero FinCorp Limited (HFCL) to help the latter expand its presence in the two-wheeler financing sector.

HFCL is predominantly engaged in the business of providing two-wheeler loans and micro, small and medium enterprises (MSME) loans to clients in low-income states of India.

The investment, which will be in the form of a senior loan, will allow HFCL to expand its two-wheeler financing to self-employed individuals or MSME borrowers in low-income states. The company will also deploy three times the IFC loan amount, through its own resources and other sources of funding, towards the same target beneficiaries over the next 3 years, IFC said in a disclosure.

HFCL is part of the Hero Group of companies in India, which is promoted by the Munjal family. Hero MotorCorp Limited owns 41.2% of HFCL while the Munjal family holds 38.3%. Other investors in the company include Credit Suisse, ChrysCapital and Apis Growth.

Headquartered in New Delhi, HFCL has 3,700 retail touchpoints across 27 states in India. In FY19-20, the company claimed to have covered about 50 lakh customers. It had disbursed Rs17,827 crore of loans in FY19-20, and its total AUM as of March 31, 2020, stands at Rs25,182 crore.

The two-wheeler loan market in India is projected to grow from an estimated $7.2 billion in 2020 to $ 12.3 billion by 2025, exhibiting a CAGR of more than 11% over the next five years, according to a study by TechSci Research. Growth in the market is anticipated on account of growing disposable income, declining fuel prices and increasing ownership of two-wheelers.

Other NBFC players operating in the Indian two-wheeler loan market include Bajaj Finserv, Mahindra & Mahindra Financial Services Limited, and Shriram Transport Finance Co. Ltd.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.