 "Investments")
Vridhi Home Finance, a tech-enabled housing service provider, announced it has raised Rs 150 crore in a Series A funding round led by Elevation Capital.
Headquartered in Bengaluru, the funds raised by Vridhi Home Finance will be deployed towards geo-expansion in North Karnataka and Andhra Pradesh, strengthening the tech stack, hiring and building a liability franchise. Vridhi received its non-banking financial company – housing finance company (NBFC-HFC) licence earlier this year and has opened twenty branches across Karnataka and Andhra Pradesh since then.
Sunku Ram Naresh, founder, managing director, and chief executive officer of Vridhi Home Finance, said, "With this substantial capital infusion, we are poised to advance our mission of providing accessible housing solutions."
Vridhi Home Finance stated that the housing finance market in India is highly underpenetrated and showcases immense headroom for growth with the assets under management (AUM) on housing loans at $300 billion, which grew at a compound annual growth rate of 12 per cent over FY18-FY21.
"India’s mortgage market remains underpenetrated compared to several other emerging and developing economies at just approximately 11 per cent of gross domestic product (GDP), indicating a significant headroom to grow. Vridhi is democratising access to credit for a massively underserved population, thereby bolstering financial inclusion," said Mridul Arora, partner at Elevation Capital.
The company said it is committed to expanding credit access to semi-urban and rural areas of Bharat that have historically had limited exposure to formal credit services. "Vridhi is strategically developing its product line-up by harnessing a robust tech infrastructure and collaborating with leading providers of loan management software and digital onboarding systems, ensuring a scalable, paperless, and reliable operational process," it said in a statement.
