Shubham Housing Development Finance Company, a mortgage lender, announced on Wednesday that it had raised $112 million (or approximately Rs 863 crore) in a round that was jointly led by British International Investment, LeapFrog Investments, the Asian Development Bank, and existing investor Premji Invest.
LeapFrog, ADB, and UK’s BII (previously CDC Group) will all inject $78 million (about Rs 600 crore) in primary capital into the company as part of the deal. An entire stake from US-based Elevar Equity, which will result in the company’s exit, and a part of a stake from Motilal Oswal will also be acquired by LeapFrog and Azim Premji-owned PE Premji.
The house financier intends to use the new funds to support growth and enable a broader platform to offer affordable housing finance to emerging customers across the nation, according to a statement.
According to a March 2021 VCCircle story, Shubham Housing Development Finance is seeking growth funding from international private equity companies and others in the amount of up to Rs 500 crore (about $63.3 million). Another VCCircle story from later in June claimed that British International Investment, formerly CDC Group, had emerged as the favorite to invest in the PE-backed housing financier.
Shubham Housing Development Finance, which was founded in 2011 by Chaturvedi and Rupa Basu, claims to be one of the nation’s fastest-growing affordable housing lenders, with assets under management reaching Rs 2,410 crore (about $300 million) spread across 9 states and 100 branches.
Srini Nagarajan, managing director of BII and its regional director for Asia, said in a statement regarding the investment in Shubham Housing that “BII’s capital injection into Shubham will help increase access to homeowners through affordable housing finance and also support women’s economic empowerment.”
“Providing clean water and increasing sanitation depend on having access to decent housing. According to Michael Fernandes, senior partner at LeapFrog, the company is committed to assisting Shubham in realizing his goal of assisting thousands of low-income Indian families to achieve homeownership for the first time.
