While the company’s current borrowing stands at Rs 150 crore, it intends to raise another Rs 500 crore in the coming year, it said in a statement. The latest round of funding takes the company’s total equity to about Rs 86 crore.
Aviom will use the funding proceeds to expand its reach into tier-II and tier-III cities, the statement added. It is planning to enter the cities in Rajasthan, Madhya Pradesh, Maharashtra, Karnataka, Uttarakhand and Delhi-NCR.
“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. The company has training centres in every branch for women train & hire module,” Aviom MD & founder Kajal Ilmi said.
Investment advisory firm Unitus Capital was the exclusive financial advisor to the company.
In other notable funding deals in the housing finance segment, PNB Housing Finance Ltd has raised $100 million (around Rs690 crore) from the International Finance Corporation (IFC). Separately, SEWA Grih Rin Ltd, an affordable housing finance company of the Self-Employed Women’s Association (SEWA) Group, had raised Rs 67 crore (around $9.7 million) in March.
In October last year, IIFL India Private Equity Fund had invested Rs 100 crore ($13.5 million) in non-banking finance company KadaiEshwar (KE) Housing Finance. Last year, IFC also invested $25 million in Mahindra Rural Housing Finance Ltd.