Funding Alert

HDFC Capital raises $376 million under alternative investment fund for affordable housing

• ByStartupStory     |    January 9, 2023

HDFC Capital, a subsidiary of top mortgage lender Housing Development Finance Corporation, has raised $376 million through the HDFC Capital Affordable Real Estate Fund -3’s second scheme (H-CARE 3).

Abu Dhabi Investment Authority (ADIA) is the primary investor in H-CARE 3 schemes 1 and 2 through a wholly-owned subsidiary.

H-CARE 3 is a category II alternative investment fund (AIF) that focuses on providing long-term, flexible funding for affordable and middle-income housing projects throughout their lifecycle, including early-stage funding.

“Despite the recent headwinds in the global macro landscape, I continue to be optimistic about the demand for homes in India. As the pivot of global growth shifts, India is envisaged to remain amongst the fastest growing major economies,” said Deepak Parekh, chairman, HDFC. “And housing will play an even more important role as a catalyst for growth. HDFC Capital has been one of the pioneers of investing in affordable and mid-income housing projects in India.”

Parekh further added that, “With the support of leading global investors like ADIA and partnerships with trusted developers, the HDFC Capital platform is well on its way to achieve its medium-term goal of funding one million affordable homes in India.”

“At HDFC Capital, our vision is to finance the development of the affordable housing ecosystem in India and provide a seamless platform for all stakeholders including global investors, developers, and vendors to access financing and technology innovations to develop sustainable and smart affordable homes,” said Vipul Roongta, MD & CEO at HDFC Capital.

HDFC Capital manages the HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1), the HDFC Capital Affordable Real Estate Fund 2 (H-CARE 2), and the HDFC Capital Affordable Real Estate Fund 3 (H-CARE 3). (H-CARE 3). All of these funds combine to form a $3.1 billion platform for the development of low- and middle-income housing in India.

The goal of HDFC Capital is to finance the development of one million affordable homes in India through a combination of innovative financing, partnerships, and technology, all while focusing on sustainability.

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