New generation housing finance company Vridhi Home Finance has secured Rs 310 crore in equity funding from Norwest Venture Partners along with its existing investor Elevation Capital and the company’s founders.
It comes after the company raised $18 million from Elevation Capital in its first institutional fundraising in October 2023.
In a statement on Tuesday, Vridhi Home Finance said that it is investing in building a strong distribution network, in risk management practices and in its technology back end to create a digital home loan process.
Since its inception in 2022, it has expanded to five states with 51 branches across Karnataka, Andhra Pradesh, Rajasthan, Madhya Pradesh and Telangana. It has built up assets under management of Rs 200 crore.
Armed with fresh capital it will expand to new markets and enhance its new digital onboarding system from loan application through disbursement and servicing, the company said.
It focuses on serving small towns with populations between 3,000 and 500,000, offering home loans ranging from Rs 3 lakh to Rs 45 lakh.
“We want to become the trusted financier for underserved self-employed and informal income customers, helping them achieve their dream of home ownership. By establishing an omnichannel presence and ensuring exceptional service delivery through our phygital model, we are making home ownership accessible to traditionally underserved segments,” said Sunku Ram Naresh, CEO, Vridhi Home Finance.
Commenting on the funding, Mridul Arora, partner at Elevation Capital, said that affordable housing finance is a massive opportunity that has so far been underserved by banks and larger financial institutions, and Vridhi Home Finance, with its differentiated customer experience, can tap into that opportunity.
Source Homevior.in
