AVIOM HFC raises $30 Mn in Series D funding round led by Nuveen through primary and secondary investments
- ByStartupStory | April 5, 2023
Through a combination of primary and secondary investments made in installments, Delhi-based AVIOM Housing Finance Corporation (AVIOM HFC) has raised $30 Mn in a Series D funding round headed by Nuveen.
The funding comes 18 months after AVIOM’s Series C round of funding, which it completed in October 2021 and raised INR 59 Cr (roughly $8 Mn). In total, AVIOM has received about $54 Mn in funding from various rounds, including the most recent one.
According to the company’s MD & CEO Kajal Ilmi, the housing finance startup intends to use the incoming funds to increase its loan book and expand operations to new regions in order to support low-income households.
“With this, we propose to extend financial assistance to around 60,000+ families additionally in the next FY by disbursing approx. INR 1200 Cr,” Ilmi said, adding, “This new equity investment will propel AVIOM HFC to grow 6x by 2026.”
AVIOM HFC is a nationwide housing lender for low-income households, and it was established in 2016 by Ilmi. The start-up, which targets the niche market of informal housing, claims to combine lending with social impact.
The Delhi-based startup has been offering loans to female borrowers without formal income documentation who are primarily from semi-urban and rural areas. The startup from Delhi claims to have a clientele of 50,000 or so accounts. For home building, enlargement, and renovation, AVIOM offers loans between INR 1 Lakh and INR 5 Lakh. Its 120 branches are spread across 12 states.
The startup plans to increase its monthly disbursement to INR 150 Cr over the next six months. More than 55,000 women are reportedly given access to employment opportunities thanks to AVIOM HFC’s AVIOM Shakti sourcing model. Loan referrals are handled by Shakti officers. According to the startup, this made it one of the biggest employers of women in rural India.
Stephen Lee, senior director and head of Asia for Nuveen’s private equity impact investing team said, “AVIOM and its leadership have disrupted micro-mortgage lending in India by catering to a hitherto underserved segment. We have been greatly impressed by the company’s history of strong growth & asset quality, profitability profile, and focus on gender inclusion.”
Recently, there has been a flurry of investor activity in India’s lending tech sector. Just this week, companies like AVIOM, DMI Finance, Avanti Finance, Moneyboxx, and others raised more than $455 Mn in funding.
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