TA Associates led the acquisition of a significant minority stake in Vastu Housing Finance Corp, along with existing investors like the International Finance Corporation. The stake, purchased for approximately INR 23,340 crore (USD 400 million), values Vastu at INR 10,000 crore, with an additional USD 75 million in primary capital infusion. Founded in 2015, Vastu, backed by Multiples Alternate Asset Management and others, operates over 230 branches across 13 states. The partnership aims to accelerate Vastu's growth in affordable housing, small business loans, and vehicle finance, reinforcing its market position and expansion plans in India.
Earlier this month, private equity firm TA Associates announced that it led the acquisition of a significant minority stake in Vastu Housing Finance Corp, a diversified lending institution operating across India. The stake was acquired along with existing investors, including the International Finance Corporation. While the financial details of the transaction were not disclosed, sources familiar with the matter indicated that the investors purchased the stake for approximately INR 23,340 crore (USD 400 million), valuing Vastu at INR 10,000 crore. Additionally, Vastu received around USD 75 million in primary capital infusion.
Vastu Housing Finance Corp, founded in 2015 by Sandeep Menon and Sujay Patil, has been backed by Multiples Alternate Asset Management since its inception. Other notable investors include Norwest Venture Partners, Creation Investments, 360 ONE Asset Management, and Faering Capital. As of the end of FY24, Vastu's loan book was valued at about INR 10,000 crore, and the company operates over 230 branches across 13 states.
Sandeep Menon, CEO of Vastu, highlighted the significant strides Vastu has made in becoming a prominent institutional retail lending franchise. He expressed confidence that their partnership with TA Associates would accelerate their growth trajectory further. This sentiment reflects the company's optimistic outlook on its future growth and development.
Dhiraj Poddar, Managing Director at TA Associates, expressed confidence in Vastu's future, noting its potential to lead in the secured affordable housing segment and continue growing in small business loans and vehicle finance. He emphasised TA Associates' commitment to a long-term partnership with Vastu. This partnership aims to bolster Vastu's position in the market and support its expansion plans.
Vastu Housing Finance Corp has demonstrated considerable growth since its founding. The support from prominent investors and the recent investment by TA Associates highlights the company's potential and solid foundation. The infusion of capital is expected to fuel further growth and help Vastu expand its reach and services.
TA Associates, with its significant minority stake, aims to provide strategic guidance and financial support to help Vastu achieve its goals. This partnership is anticipated to enhance Vastu's ability to offer affordable housing loans and other financial products to a broader customer base. The backing from TA Associates also highlights the confidence that investors have in Vastu's business model and growth prospects.
The transaction marks a significant milestone for Vastu Housing Finance Corp, reinforcing its position as a key player in the Indian financial services sector. The involvement of TA Associates and other prominent investors is likely to drive Vastu's expansion and strengthen its market presence.
In conclusion, the acquisition of a significant minority stake in Vastu Housing Finance Corp by TA Associates and other investors marks an important development in the company's journey. With a strong backing and an infusion of capital, Vastu is well-positioned to continue its growth trajectory and achieve its vision of becoming a leading retail lending franchise. The partnership with TA Associates is expected to provide the necessary resources and strategic guidance to help Vastu expand its services and reach more customers across India. This development underscores the confidence that investors have in Vastu's potential and sets the stage for a promising future for the company.
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