Vridhi Home Finance Secures $18M Funding, Eyes Expansion in Tier II and III Cities
Vridhi Home Finance, a home finance lending fintech, has secured Rs 150 crore ($18 million) in its Series A funding round led by Elevation Capital, an early-to-growth stage venture capital investor.
As per the Bengaluru-based fintech, the freshly raised funds will be used to expand its branches by adding 25-30 more within Karnataka, Andhra Pradesh, and Telangana in the next 12-18 months.
The startup also plans to use the funds to improve its tech stack and build its team.
Vridhi Home Finance | Housing Finance Firm
Founded last year by Sunku Ram Naresh, Sandeep Arora, and Sunil Mehta, Vridhi Home Finance is a tech-enabled brick-and-mortar housing finance firm that provides loans for home needs serving salaried and self-employed individuals in tier II and III cities across India.
Targeting semi-urban and rural areas of India, because of their limited exposure to formal credit services, the home finance lending fintech offers secured home loans at an average ticket size of Rs 6-8 lakh.
Speaking about the funding round, Sunku Ram Naresh, Founder of Vridhi Home Finance, stated that the funding will help the home finance startup to secure its debt franchise going ahead.
“We just started our business, and with a decent size of capital, it will help us secure debt from multiple renowned banks.”
The Bengaluru-based fintech, which was bootstrapped until now, aims to create a channel for secured housing loans and leverages technology, sales, and credit tools to enable the most efficient distribution of housing financing. It is working with a mission to bring the underserved and unserved population into the financial mainstream, facilitating a better standard of living by helping them own a dream home.
Statement from the Investor
Commenting on the development, Mridul Arora, Partner, Elevation Capital, highlighted that India’s mortgage market is underpenetrated and offers a significant growth opportunity.
“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 democratizing access to credit for a massively underserved population, thereby bolstering financial inclusion.”
The startup claims to have around 350-400 customers and to scale its operations, Vridhi Home Finance is collaborating with providers of loan management software and digital onboarding systems. As per the startup, it is presently adding about 80-90 new customers every month.
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