AVIOM Housing Finance Raises $30 Mn To Support Low-Income Households

Delhi-based AVIOM Housing Finance Corporation (AVIOM HFC) has raised $30 Mn in a Series D funding round led by Nuveen through a mix of primary and secondary investments in tranches.

The funding comes 18 months after AVIOM raised INR 59 Cr (about $8 Mn) in its Series C round of funding in October 2021. Including the current round, AVIOM has raised around $54 Mn in funding across various rounds.

The housing finance startup plans to deploy the incoming funds to grow its loan book and expand operations to new geographies to support low-income households, per the company’s MD & CEO Kajal Ilmi.

“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.”

Founded in 2016 by Ilmi, AVIOM HFC is a housing lender for low-income households across the country. The startup claims to combine lending with social impact – catering to a niche market of informal housing.

The Delhi-based startup has been providing loans to women borrowers from predominantly semi-urban and rural regions who do not have any formal income documentation. The Delhi-based startup claims to have a customer base of around 50,000 accounts. AVIOM provides loans in the range of INR 1 Lakh to INR 5 lakh for house construction, extension, and renovation. It has a network of 120 branches in 12 states.

Over the next six months, the startup looks to increase its monthly disbursement to INR 150 Cr a month and will also add 50 more branches to its existing network.

AVIOM HFC’s sourcing model, known as AVIOM Shakti, is said to create employment opportunities for more than 55,000 women. Shakti officers are the referral agents for loans. The startup claimed that that made it one of the largest women employers 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.”

India’s lendingtech sector has seen a flurry of investor activity lately. The likes of DMI Finance, Avanti Finance, Moneyboxx and now AVIOM have raised more than $455 Mn in funding just this week.

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