Vridhi Home Finance Raises Rs 310 Crore in Series B Funding Led by Norwest Venture Partners – SME News

Housing finance company Vridhi Home Finance on Tuesday said it has raised Rs 310 crore in a Series B funding round led by Norwest Venture Partners. The round also included participation from the company’s founders and existing investor Elevation Capital. The latest funding will accelerate Vridhi’s expansion into existing markets while strengthening its technology infrastructure, the company said in a statement.

Speaking about the investment, Sunku Ram Naresh, Founder, MD & CEO, Vridhi Home Finance said, “By establishing an omnichannel presence and delivering exceptional service delivery through our brick-and-mortar model, we are making home ownership accessible to traditionally underserved segments.”

Launched in 2022, Vridhi Home Finance provides loans for construction, expansion, renovation, etc. of manufactured homes and has assets under management of over Rs 200 crore. The loan offered ranges from Rs 3 lakh to Rs 45 lakh with a focus on small towns.

“Vridhi’s founding team played a key role in laying the foundations of the affordable housing finance industry in India and has led two highly successful journeys towards achieving the zero-to-one goal over the past two decades,” said Nikhil Kukada, Director, Norwest Venture Partners.

According to the Reserve Bank of India (RBI), home loans have recorded significant growth in the last two financial years, indicating growing demand for houses in the country. Credit disbursed to the housing sector, mainly consisting of home loans, jumped by Rs 10 lakh crore in the last two years to Rs 27.22 lakh crore as of March 2024 from Rs 17.26 lakh crore as of March 2022.