Vridhi Home Finance raises Rs 150 crore in series A funding round
- ByStartupStory | November 1, 2023
Vridhi Home Finance, a housing finance lender, has successfully secured ₹150 crore in its first round of funding, with venture capital firm Elevation Capital as the primary investor. The infusion of fresh capital is set to power Vridhi’s expansion plans and facilitate the scaling of its operations. Additionally, the company aims to enhance its credit offerings through collaboration with larger financial institutions, all while focusing on extending its footprint in North Karnataka and Andhra Pradesh.
Empowering Housing Aspirations
Founded in 2022 by seasoned finance professionals, Vridhi Home Finance operates under the leadership of Sunku Ram Naresh as Chief Executive Officer, Sunil Mehta as Chief Finance Officer, and Sandeep Arora as Chief Operating Officer. With a recent grant of its home finance license, this Bengaluru-based startup is well-positioned to make its mark on the housing finance sector.
At present, Vridhi Home Finance operates a network of 20 branches spread across Karnataka and Andhra Pradesh, with a primary mission to provide secure housing loans. These loans typically range from ₹6 to ₹8 lakhs and are tailored to the needs of both salaried individuals and self-employed professionals, who previously faced difficulties in accessing formal credit channels.
A Transformative Vision
In pursuit of its vision to democratize homeownership, Vridhi Home Finance is partnering with leading providers of loan management software (LMS) and digital onboarding systems. These collaborations are geared towards establishing a scalable, paperless, and dependable operational framework.
Sunku Ram Naresh, Founder, MD & CEO of Vridhi Home Finance, expressed the company’s commitment to making homeownership aspirations a reality for countless individuals across the country. He stated, “With this substantial capital infusion, we are poised to advance our mission of providing accessible housing solutions. Our commitment to transforming homeownership aspirations into reality for numerous individuals nationwide remains resolute.”
Unleashing Growth Potential
The housing finance sector in India is widely considered to be underpenetrated, with significant room for expansion. Housing loans’ Assets Under Management (AUM) currently stand at $300 billion, reflecting a Compound Annual Growth Rate (CAGR) of 12% over the fiscal years 2018-2021. India’s mortgage market remains underdeveloped compared to several other emerging economies, accounting for just 11% of the country’s GDP, indicating substantial growth potential.
Mridul Arora, Partner at Elevation Capital, highlighted the importance of Vridhi’s mission by stating, “Vridhi is democratising access to credit for a massively underserved population, thereby bolstering financial inclusion. The Vridhi team brings unparalleled industry experience and drive to make homeownership more affordable and accessible to Indians. We are excited to partner with them to make this vision a reality.”
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