Vridhi Home Finance, a rising housing finance company, recently closed its Series B round with ₹310 crore raised by Norwest Venture Partners as the lead investor. The founders and existing investor Elevation Capital also participated in the fund round. It is believed that the new funds will help Vridhi scale its current markets faster and at the same time enhance the technology infrastructure for the same.
PC: IndianTechDesk
According to Sunku Ram Naresh, Founder, MD & CEO of Vridhi Home Finance they are establishing an omnichannel presence and ensuring service delivery to the best with their phygital model in making homeownership accessible for traditionally underserved segments. This makes Vridhi a pioneer in housing finance with its mission to make housing finance more inclusive for all the demographics.
Launched in 2022, Vridhi Home Finance provides all sorts of loans that could satisfy its customers’ requirements regarding home- purchase of readymade houses, building a home, expansion, or renovating. It looks towards developing smaller towns; and for now, its asset pool is above ₹200 crores. Its loans stretch from ₹3 lakh to ₹45 lakh, available precisely when the customer would like in their town.
Nikhil Kookada, Principal at Norwest Venture Partners, praised the founding team of Vridhi for their very significant contributions to the Affordable Housing Finance industry in India. He added that they have successfully built two highly successful ventures over the past two decades, thereby setting a very strong foundation for Vridhi’s growth.
The timing of Vridhi’s funding round is also significant as housing loans have seen tremendous demand in India over the last two financial years. According to RBI data, credit outstanding to the housing sector, which majorly consists of home loans, has increased by ₹10 lakh crore in the last two years. By the end of March 2024, this amount had risen to ₹27.22 lakh crore from ₹17.26 lakh crore that was recorded at the end of March 2022. This shows the robust housing market, which reacts well to increased demand for homes in the country.
This fresh equity infusion should act as a boost to its growth plans through which Vridhi would enhance the capacities of delivering services to numerous customers, and through them, enhance delivery. Aiming at creating seamless experiences across the competitive housing finance segment of customers is this phigital model.
Given the thrust in technology and customer service, Vridhi Home Finance is well positioned to seize the opportunity from rising housing loan demand in India. The company’s focus on making home ownership accessible will be in step with more government initiatives toward affordable housing.
As Vridhi keeps growing, it will also come across competition from well-established and new entrants in housing finance. However, because of the support from strong experienced investors such as Norwest Venture Partners and Elevation Capital, along with a founding team, Vridhi Home Finance is well-prepared to make a significant presence in the market.
Thus, the overall amount of ₹310 crore that Vridhi Home Finance raises for itself would be a phenomenal milestone for the company itself, as it would definitely enable the company to expand its wings and upgrade technology as well. Vridhi shall play a very key role in the evolving landscape of affordable housing finance in India-very sharply focused on underserved segments of the population.
