News

Elevation Capital Leads INR 150 Cr Funding In Vridhi Home Finance  

Elevation Capital Leads INR 150 Cr Funding In Vridhi Home Finance  

SUMMARY

Founded in 2022, the NBFC is operating as a phygital housing finance company has been bootstrapped till date

Vridhi aims to create a channel for secured housing loans, serving salaried and self-employed individuals in tier 2/3 cities across India

Headquartered in Bengaluru, Vridhi currently operates in Karnataka and Andhra Pradesh, with a network of twenty branches spread across these regions.

Inc42 Daily Brief

Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy

Bengaluru-based NBFC Vridhi Home Finance has raised INR 150 Cr in a Series A round of funding led by Elevation Capital. The startup has been bootstrapped so far. It received its NBFC – HFC license earlier this year and has opened twenty branches across Karnataka and Andhra Pradesh since then.

The funds raised will be deployed towards geo-expansion in North Karnataka and Andhra Pradesh, strengthening the tech stack, hiring, and building a liability franchise.

Vridhi Home Finance was launched in 2022 by Sunku Ram Naresh, the founder, MD, and CEO, along with co-founders Sandeep Arora (COO) and Sunil Mehta (CFO).

With a combined experience exceeding 75+ years in the mortgage segment among the co-founders and the founding team, Vridhi aims to create a channel for secured housing loans, serving salaried and self-employed individuals in tier 2/3 cities across India.

It focuses on providing secured housing loans with an average ticket size of INR 6 Lakhs – INR 8 Lakhs to the salaried and self-employed, who previously faced challenges in accessing formal credit.

In order to achieve this, the startup is collaborating with leading providers of loan management software (LMS) and digital onboarding systems, ensuring a scalable, paperless and reliable operational process.

The housing finance segment in India is highly underpenetrated and showcases immense headroom for growth with the AUM on housing loans at ~$300 Bn, which grew at a CAGR of ~12% over FY 18-21.

According to Mridul Arora, Partner, Elevation Capital, India’s mortgage market remains underpenetrated compared to several other emerging and developing economies at just ~11% of GDP, indicating a significant headroom to grow.

“Vridhi is democratising access to credit for a massively underserved population, thereby bolstering financial inclusion,” he added.

In April 2022, Elevation capital launched a $670 Mn fund  to invest in consumer tech and brands, fintech, SaaS and Web3 startups. Earlier this year, Elevation Capital also saw a part exit from XpressBees by selling a portion of its stake to Malaysian sovereign fund Khazanah for $40 Mn, besides investing in Rigi, Fashinza and Bluelearn.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

Inc42 Daily Brief

Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy

Recommended Stories for You