Funding Alert

Vridhi Home Finance Secures INR 310 Cr Series B Funding Led by Norwest Venture Partners

• ByStartupStory     |    November 2, 2024

Bengaluru-based non-banking financial company (NBFC) Vridhi Home Finance has raised INR 310 crore (approximately $36.9 million) in a Series B funding round, led by Norwest Venture Partners. The funding round also saw participation from Elevation Capital, an existing investor, and the company’s founders, according to Vridhi’s official statement. The funds aim to increase accessibility to housing finance across India, particularly in underserved markets.

The newly raised capital will support Vridhi’s expansion into existing markets, with a focus on strengthening its technology infrastructure. The company highlighted its commitment to customer-centric solutions, robust risk management practices, and an extensive distribution network as key investment priorities.

Vridhi Home Finance provides home loans between INR 3 lakh and INR 45 lakh, focusing on smaller towns with populations between 3,000 and 500,000. Through this funding, the NBFC aims to expand its physical network and reach a broader demographic of underserved customers, facilitating affordable housing solutions across regions that often lack access to formal financial services.

“By establishing an omnichannel presence and ensuring exceptional service delivery through our phygital model, we are making home ownership accessible to traditionally underserved segments. The strong backing from Norwest and continued support from Elevation Capital validates our approach of combining deep market understanding with technology-led innovation,” said Sunku Ram Naresh, Founder, MD, and CEO of Vridhi Home Finance.

Founded in 2022 by Sunku Ram Naresh, alongside co-founders Sandeep Arora and Sunil Mehta, Vridhi Home Finance has been leveraging technology and advanced credit tools to streamline housing finance distribution. The company has expanded operations across five states, including Karnataka, Andhra Pradesh, Rajasthan, Madhya Pradesh, and Telangana, with a growing network of 51 branches and an Assets Under Management (AUM) exceeding INR 200 crore.

The recent Series B funding follows a successful Series A round in October of the previous year, in which Vridhi raised INR 150 crore led by Elevation Capital. In 2023, the company obtained its NBFC – Housing Finance Company (HFC) license, further solidifying its position in the housing finance industry.

This development comes as the Indian fintech sector experiences rapid growth, with a compound annual growth rate (CAGR) of 18% from 2022 to 2030. The market is projected to reach over $2.1 trillion by the end of the decade, as per the latest Inc42 report.

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