Faering Capital Invests $30M in Vastu Housing Finance; Secondary Sale

• ByStartupStory     |    October 20, 2023

Vastu Housing Finance Corporation Limited, a digital housing finance company, has successfully completed a $30 million fundraising from Faering Capital, a private equity fund based in Mumbai. This transaction represents a secondary sale by funds managed by Multiples Alternate Asset Management Pvt Ltd and other shareholders of Vastu. This marks the third investment by Faering Capital from its $346 million Fund 3, which reached its final close in November 2022.

The founders of Faering Capital, Aditya Parekh, and Sameer Shroff, have invested in several startups, including Go Digit General Insurance, Niva Bupa Health Insurance, CAMS, National Stock Exchange (NSE), Finova Capital, Nykaa, and Plum. Aditya Parekh, Co-founder and Managing Director of Faering Capital expressed confidence in Vastu’s potential, stating that “Housing finance and specifically affordable housing are multi-decadal opportunities in India. Having tracked Vastu’s progress over the last few years, we are confident that the company is well on its way to building a highly profitable, large, and respected institutional franchise focused on affordable housing finance.”

Vastu Housing Finance, a digital housing finance company, has established partnerships with 40 lending partners and institutional investors, including the National Housing Bank (NHB), State Bank of India (SBI), Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Union Bank, HSBC, and others. The company manages assets worth $900 million across 15 states.

Sandeep Menon, Founder, MD, and CEO at Vastu, welcomed Faering Capital as a valued partner, highlighting their industry expertise and long-term support. He stated, “We are happy to have Faering Capital join us as a valued partner. Aditya, Sameer, and the team have great domain knowledge in our industry and have been long-term supporters of Vastu. We look forward to having them as long-term shareholders.”

Vastu employs a proprietary technology platform called Pulse, which offers a paperless digital experience and quicker turnaround times for customers. In addition to its core mortgage lending activities, the company has launched an NBFC venture called Vastu Finserve, focusing on vehicle and MSME finance.

“We warmly welcome Faering Capital as shareholders of the company and look forward to working with them going forward. This marks another milestone in our partnership with Vastu, witnessing the evolution of a shared vision that has led to the establishment of an accomplished institution.”, stated Sudhir Variyar, MD and Deputy CEO of Multiples Alternate Asset Management.

In terms of financial performance, Vastu reported a Profit after Tax (PAT) of over Rs 285 crore in FY23. As of September, the lender claimed to have financially included over 80,000 customers with a monthly income of $500, many of whom lack formal access to credit from traditional financial institutions in India due to a lack of documented income.

Exciting news! We’re now on WhatsApp Channels too.  Subscribe today by clicking the link and stay updated with the latest insights in the startup ecosystem! Click here!

The board of directors of Vastu includes notable figures such as former RBI deputy governor Shyamala Gopinath, former global head of retail banking at Standard Chartered Bank, Viswanathan Ramachandran, former head of audit at KPMG, Natrajan Ramakrishna, former Chairman and Managing Director of Andhra Bank, R S Reddy, and former Managing Director of NIIT Ltd, Vijay Kumar, who serve as Independent Directors.

Follow Startup Story