India: WestBridge Capital leads $122m funding in Aptus Value Housing

Photo: Reuters

Aptus Value Housing Finance India Ltd Tuesday said it has raised about $122 million (Rs 880 crore) in an equity round of financing led by existing investor WestBridge Capital.

Steadview Capital and Sequoia Capital have come in as new investors, Aptus said in a statement. Existing investor Malabar Investments also participated in the round, which valued the Chennai-based home loan company at about $706 million (Rs 5,080 crore).

“With a set of marquee investors, we are well capitalised to build on the strong base and expect to grow our loan book at 60+ % CAGR over 3 years,” Aptus founder M Anandan said.

Private equity firm WestBridge Capital, which invests across private equity and public markets in India, first invested about $16 million for a 20 per cent stake in Aptus in November 2014. The investment was routed through its WestBridge Crossover Fund. In 2016, WestBridge and Caspian invested a total of Rs 270 crore in Aptus.

The company had earlier secured capital from from Granite Hill Capital Partners and India Financial Inclusion Fund.

Last year, the International Finance Corporation (IFC), a part of the World Bank group, also proposed to invest about $15 in Aptus through senior secured non-convertible debentures (NCDs) with a tenor of seven years.

Aptus was founded in 2010 to address the housing finance needs of the self-employed, low and middle income families primarily from semi urban and rural areas. The company has a large branch presence in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka and Pondicherry, and is currently serving over 40,000 customers.

The company claims to have disbursed over Rs 3,500 crore worth of loans.

Aptus expects to continue to maintain its growth, penetrate deeper into its home market in south, and plan foray into adjacent states in the years ahead, it said. It targets to achieve a loan book of 9,000 crore by end of FY22.

Meanwhile, WestBridge has clinched a couple of deals in the recent past.

Last month, the firm co-led a $42 million Series C funding round in Vedantu, a Bangalore-based startup that operates a live online tutoring service in India. The same month, it led a $55.5 million financing round in bike taxi startup Rapido. In June, WestBridge led an investment of around $52 million in online lending platform Biz2Credit Inc.

WestBridge has ~$2.9 billion in assets under management.

Spark Capital acted as the exclusive financial advisor to Aptus for this transaction.