Delhi-based AVIOM India Housing Finance has managed to raise INR 60 Cr in its Series B funding round by Gojo & company, Inc JAPAN and Capital 4 Development Asia Fund Netherlands. Investment advisory firm Unitus Capital was the exclusive financial advisor to the company.
The latest round of funding will increase the company’s equity to INR 86 Cr. AVIOM’s current borrowings stand at INR 150 Cr, and the firm intends to raise another INR 500 Cr in debt in the coming year.
Previously, the company had raised INR 15 Cr in Series A round of funding by Singapore-based impact-focused venture capital Insitor Management.
Marking its entry into the housing finance sector, Taejun Shin, founder of Gojo & Co, said, “AVIOM has been actively addressing a pressing issue for many Indian households who are constantly on the lookout for affordable housing loans, however, somehow fail to secure them. We hope that our equity partnership will significantly contribute to the Aviom’s business expansion and the clients’ life improvements.”
With this funding, the company plans of venturing into Tier 2 and Tier 3 cities of Rajasthan, Madhya Pradesh, Maharashtra, Karnataka, Uttaranchal, and Delhi NCR. The company intends to provide loans to families that are otherwise rejected by big insurance companies.
Aviom is an affordable housing company that provides financial assistance for “home buying, improvement, extension and construction” to families in semi-urban areas.
“AVIOM follows a strong in-house credit assessment model, which serves a dual purpose of empowering women in rural India by creating jobs for them and allowing them to work flexible hours to contribute to the overall economic development,” said Kajal Ilmi, in a statement.
The model focuses on primarily lending support to women homeowners. The company hires and trains women agents as well. Currently, the company has 8K female employees and will be expanding to 50K female employees by the end of this year.