Vastu Housing Finance Corporation Ltd has raised $200 million (around ₹1,460 crore) in a financing round from a consortium led by Norwest Venture Partners, Creation Investments, and IIFL Asset Management, the company said on Friday.
The transaction involves a primary infusion of $125 million ( ₹912 crore) and the balance is a secondary sale by current investors.
The fresh investment will help Vastu Housing expand operations in existing locations, explore new markets and invest in the next-generation technology platform to enhance customer experience, according to the company. It also plans to hire 1,000 additional team members across functions over the next 12 months.
“With this investment, Vastu will further consolidate operations in 13 states its currently present and build products to provide easy, faster and affordable credit for 900 million population residing in these states,” Sandeep Menon, cofounder, MD & CEO, Vastu, said.
Vastu, set up in 2015 by Menon and Sujay Patil, is a digitally-enabled retail affordable housing finance company with a pan-India presence. The company has assets under management of around $400 million, and has a presence in 13 states across India, and has over 1,200+ employees.
The company also set up a non-banking finance company (NBFC) – Vastu Finserve — venturing into vehicle and MSME finance. Before this investment, Vastu was upgraded to [ICRA] A+ and assigned the highest rating on a short-term scale of [ICRA] A1+ by ICRA Ltd.
Vastu is majority-owned by funds managed by Multiples Alternate Asset Management.
Norwest Venture Partners is a multi-stage investment firm that manages $9.5 billion in capital and has funded more than 600 companies since its inception. In India, Norwest Venture Partners makes early to mid-stage venture capital investments and growth investments in companies.
The sector-agnostic fund has backed firms like Kotak Mahindra Bank, Swiggy, NSE, Five Star Business Finance, OFBusiness, Ess Kay Fincorp, and Veritas Finance among others.
This article was first published on livemint.com.