Hero FinCrop IPO

Hero FinCorp, an associate company of Hero MotoCorp, is a prominent Indian non-banking financial company (NBFC) specializing in consumer finance and commercial lending. Established in 1991 as Hero Honda Finlease Ltd, the company initially provided financing solutions to Hero MotoCorp's suppliers and dealers. In 2011, following the rebranding of Hero Honda Motors to Hero MotoCorp, the company was renamed Hero FinCorp and expanded its services to include a broader range of financial products.

Products and Services

Hero FinCorp offers a diverse portfolio of financial products tailored to meet various customer needs:

• Two-Wheeler Loans: Financing options for purchasing Hero MotoCorp two-wheelers, facilitating accessible mobility solutions.
• Loyalty Customer Personal Loans: Top-up loans for existing customers with a good repayment track record, providing additional financial support.
• Used Car Finance: Loans for purchasing pre-owned cars, catering to both salaried and self-employed individuals.
• Loan Against Property: Secured loans for corporates, partnership firms, and self-employed individuals, offering flexible tenures and interest rates.
• SME & Commercial Loans: A suite of financial products, including working capital loans, machine loans, and medical equipment financing, supporting business growth and operational efficiency.

Technological Advancements

To enhance customer experience and streamline operations, Hero FinCorp has invested in digital solutions:

• Customer Service App: A mobile application enabling customers to view loan details and update information, thereby improving service accessibility.
• SimplyCash: An instant loan app launched in early 2020, allowing users to avail quick cash loans, reflecting the company's commitment to digital innovation.

Financial Performance and Challenges

Hero FinCorp has experienced significant growth, achieving a loan book of ₹6,400 crore by March 2016. However, the company has faced challenges with non-performing assets (NPAs). After peaking at 7.9% in FY22 due to the COVID-19 pandemic, gross NPAs were reduced to 5.38% in FY23 and 4.26% the following year. As of December 31, 2024, gross NPAs stood at 5.36%, indicating fresh slippages in recent quarters.

Compliance and Security

Hero FinCorp emphasizes continuous compliance and security at scale. The company has collaborated with leading technology partners to adapt its digital infrastructure, ensuring adherence to industry security standards and enhancing governance.