A digital-first housing finance team serving customers in a Tier II/III town to expand affordable housing loans.
Chennai, September 13, 2025
A Chennai-based housing finance firm has secured INR 120 crore in fresh equity from two private investors to scale lending to lower- and middle-income households across under-served Tier II and Tier III cities. The capital will push net worth above INR 210 crore and support rapid branch expansion, increased lending capacity and enhancements to digital loan origination and management systems. Since launching operations, the lender has grown quickly, building an AUM of around INR 500 crore and a footprint of 86 branches. The firm targets first-time buyers, self-employed borrowers and smaller-town homeowners with lower-ticket affordable housing products.
A Chennai-based housing finance firm has secured an INR 120 crore equity infusion from two investors to boost its net worth above INR 210 crore and scale lending across under-served Tier II and Tier III cities. The funds will be used to expand branches, grow loan books, and deepen reach among lower- and middle-income households that need smaller, affordable home loans.
The fresh capital is intended to help the company meet fast-growing demand for affordable housing finance outside big metros. The lender focuses on customers who are first-time buyers, self-employed or have limited formal credit history, offering digitally driven products and quick loan turnarounds. Expanding into smaller cities can unlock a large market while addressing gaps left by legacy lenders.
The funding was an equity infusion from two financial backers. An advisory firm acted as exclusive financial adviser to the transaction. One investor manages a broad alternative asset platform of about INR 3,500 crore across debt and equity, while the other is an early-growth investor incubated by a development-stage firm and focused on financial services and climate solutions.
The housing finance company was incorporated in March 2023 and started operations in December 2023. In roughly 18 months it has expanded to 86 branches across seven states and built an assets under management base of about INR 500 crore. Typical loan sizes fall between INR 13 lakh and INR 15 lakh, targeting home construction loans and loans against property for lower- and middle-income borrowers.
The lender runs a fully digital operating model designed to speed up document checks, approvals and disbursements. The company markets itself as a digital-first housing finance player with industry-fast turnaround times and a focus on underserved geographies. Leadership includes a managing director and CEO who previously helped build a major housing finance portfolio to about INR 7,000 crore, bringing sector experience to the growth plan.
To support scale and compliance, the firm uses a cloud platform and banking software to automate loan origination, collections and financial reporting. The cloud setup keeps primary and disaster recovery sites within the country to meet data hosting rules. The company reports faster product rollouts, lower cloud costs, improved uptime and a much shorter end-to-end process for approvals and disbursements compared with older paper-based workflows.
As part of rapid early growth, the lender reported a high run rate of disbursals during an initial period, and has set a target to build toward $1 billion in assets under management in five years and to onboard about 100,000 customers. The new capital is expected to accelerate branch expansion, customer acquisition and product development, including plans for a mobile app that will connect homeowners with local tradespeople as a source of leads and service partnerships.
The company competes in the affordable housing finance segment with several established housing finance firms that also focus on smaller cities and middle-income borrowers. Investors backing the round see a long-term market opportunity driven by urbanisation, policy support and growing demand for first-time home ownership in non-metro India. One investor noted that legacy institutions often lack the agility to serve this segment, while the lender combines regional reach with digital processes and risk management to serve customers at scale.
An advisory firm managed the deal as exclusive financial adviser. The larger investor is an alternative asset manager with a portfolio that includes consumer and food brands. The co-investor is focused on early-growth companies in financial services and climate solutions and was itself incubated by a development-stage firm. Both backers see impact potential alongside financial returns from expanding access to affordable home finance.
With the new capital, the lender aims to extend its branch network, increase lending capacity in Tier II and III markets, develop new digital products and launch the planned tradespeople mobile app. Scaling responsibly will require continued investment in risk systems, local underwriting teams and partnerships to reach self-employed and informally employed customers who are often excluded by traditional lenders.
The company raised INR 120 crore through equity. The capital will be used to grow lending operations, open more branches, scale technology and reach more borrowers in Tier II and Tier III cities.
Two institutional investors participated: an alternative asset manager with a sizable debt and equity platform, and an early-growth investor focused on financial services and climate solutions. An advisory firm acted as exclusive financial adviser.
Since starting operations in December 2023, the firm grew to 86 branches across seven states and an AUM of about INR 500 crore in roughly 18 months.
It targets lower- and middle-income households, self-employed borrowers and first-time home buyers. Main products include home construction loans and loans against property, with an average ticket size between INR 13 lakh and INR 15 lakh.
The firm uses cloud infrastructure and banking software to automate loan origination, collections and financial reporting, enabling faster approvals and compliant data hosting within the country.
The lender aims to reach $1 billion in AUM within five years and to acquire around 100,000 customers.
| Feature | Details |
|---|---|
| Funding | INR 120 crore equity infusion |
| Post-funding net worth | Expected beyond INR 210 crore |
| Use of funds | Scale operations, branch expansion, tech and product development |
| Customers targeted | Lower- and middle-income, self-employed, first-time buyers |
| Average loan size | INR 13–15 lakh |
| Operational model | Fully digital platform with fast turnaround |
| Current scale | 86 branches across seven states; AUM ~INR 500 crore |
| Leadership experience | CEO with prior experience building a large housing finance portfolio (~INR 7,000 crore) |
| Targets | $1 billion AUM and ~100,000 customers in five years |
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