The Hero Group's lending arm has raised $267 million from Apollo Global Management, Hero MotoCorp, and other investors.

Its hybrid value strategy has committed $125 million to Hero FinCorp Limited (HFL), one of India's largest privately owned non-banking financial companies with a $3.7 billion loan book.

The investment will help HFL expand its retail and corporate lending product lines.

“With this new capital, we will reach $10 billion in assets and serve over 15 million customers by FY-25. This is in line with our mission to empower every Indian's dream of upward mobility,” said Abhimanyu Munjal, Hero FinCorp's Joint Managing Director and CEO.

Hero FinLease Limited was founded in 1991 and expanded in 2012, growing its loan book from Rs 300 crore to Rs 30,000 crore in ten years. The company caters to the retail, SME, and corporate lending markets.

“This is Hybrid Value's third investment in Asia in the last 9 months, demonstrating our commitment to growing Apollo's presence in Asia, including India,”

Matt Michelini, partner, Asia-Pacific head and co-head of Apollo Hybrid Value.

The Hybrid Value strategy claims to have invested in WR Grace, JSW Cement, Global Schools Group, US Acute Care Solutions, Alorica, and Albertsons over the last 18 months for M&A, pre-IPO financing, liquidity solutions, and growth capital.

The investment in HFL is expected to close in Q2 2022, subject to customary closing conditions, including regulatory approvals. The Apollo Funds hired Shardul Amarchand Mangaldas & Co.