Vridhi Home Finance, an innovative housing finance company, has raised INR 310 crore in equity funding from Norwest Venture Partners, Elevation Capital, and its founders. This follows an earlier USD 18 million investment from Elevation in October 2023. Established in 2022, Vridhi has expanded to 51 branches across five states and boasts INR 200 crore in assets under management. The new capital will enable the company to enter new markets and improve its digital onboarding system for home loans, targeting underserved self-employed individuals in small towns, with loan amounts ranging from INR 3 lakh to INR 45 lakh.
Vridhi Home Finance, a new-generation housing finance company, has successfully secured INR 310 crore in equity funding from Norwest Venture Partners, along with contributions from existing investor Elevation Capital and the company's founders. This funding follows Vridhi's earlier successful raise of USD 18 million from Elevation Capital during its initial institutional fundraising round in October 2023. In a statement released on Tuesday, Vridhi Home Finance emphasized its commitment to investing in the development of a robust distribution network, enhancing risk management practices, and improving its technology infrastructure to establish a seamless digital home loan process.
Since its establishment in 2022, Vridhi Home Finance has expanded its footprint to five states, operating a total of 51 branches across Karnataka, Andhra Pradesh, Rajasthan, Madhya Pradesh, and Telangana. The company has successfully built assets under management totaling INR 200 crore. With the infusion of new capital, Vridhi aims to enter new markets and enhance its digital onboarding system, streamlining the process from loan application to disbursement and servicing. The company primarily targets small towns with populations ranging from 3,000 to 500,000, offering home loans that vary from INR 3 lakh to INR 45 lakh.
Sunku Ram Naresh, the CEO of Vridhi Home Finance, expressed the company's ambition to become a trusted financier for self-employed individuals and those with informal income, aiming to help them realize their dream of home ownership. He emphasized that by establishing an omnichannel presence and delivering exceptional service through their phygital model, they are making home ownership accessible to traditionally underserved segments.
Mridul Arora, a partner at Elevation Capital, commented on the funding by noting that affordable housing finance presents a significant opportunity that has been largely overlooked by banks and larger financial institutions. He highlighted that Vridhi Home Finance, with its unique customer experience, is well-positioned to capitalize on this opportunity.
With this latest funding, Vridhi Home Finance aims to strengthen its position in the affordable housing market, addressing the needs of self-employed and informal income earners. By leveraging technology and an omnichannel approach, the company is poised to make home ownership accessible to traditionally underserved communities across India.
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