Hero FinCorp Raises ₹260 Crore in a Pre-IPO Funding Round

June 16, 2025

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Hero FinCorp, the financial services subsidiary of Hero MotoCorp, has secured ₹260 crore through a pre-IPO placement ahead of its upcoming public offering.

According to a public filing, the company allotted 18.57 lakh shares at ₹1,400 each to 12 investors on June 13.

Following this capital raise, Hero FinCorp has trimmed its fresh issue size from ₹2,100 crore to ₹1,840 crore, bringing the total IPO size down to ₹3,408 crore from the earlier planned ₹3,668 crore.

Two giants, Shahi Exports and RVG Jatropha Plantation, invested Rs 69 crore and Rs 50 crore respectively.

Hero FinCorp: What does it do?

Hero FinCorp (Hero FinCorp Ltd) is a prominent Indian non-banking financial company (NBFC) and a subsidiary of Hero MotoCorp, founded in 1991.

Hero FinCorp aims to make financing “Easier, Simple and Faster”. It provides various types of loans such as Instant Personal Loans, Two-Wheeler Loans, Unsecured Business Loan, Insurance and much more.

It serves one loan every 30 seconds and has served over 11.8 million customers to date. It has recently been on a decline as it made a profit of 109.49 Cr in FY25 (till date) as compared to ₹636.78 cr last year.

Why did Hero FinCorp raise a pre-IPO funding round?

Hero FinCorp raised ₹260 crore in a pre-IPO funding round to strengthen its financial position.

With this extra capital, the company is better equipped to lend more and handle market uncertainties.

Getting 12 trusted investors on board before going public also built strong investor confidence. It shows that experienced players believe in the company’s potential, which sends a positive message to the broader market.

By raising funds privately, Hero FinCorp could limit dilution of ownership and improve its valuation going into the IPO.

Finally, this round gave the company valuable time to prepare. It allowed them to refine their operations, clean up their finances, and ensure they’re fully ready to enter the public market with a strong footing.