A digital-first housing finance team serving customers in a Tier II/III town to expand affordable housing loans.
Chennai, September 13, 2025
A Chennai-based housing finance firm has secured INR 120 crore in fresh equity from two private investors to scale lending to lower- and middle-income households across under-served Tier II and Tier III cities. The capital will push net worth above INR 210 crore and support rapid branch expansion, increased lending capacity and enhancements to digital loan origination and management systems. Since launching operations, the lender has grown quickly, building an AUM of around INR 500 crore and a footprint of 86 branches. The firm targets first-time buyers, self-employed borrowers and smaller-town homeowners with lower-ticket affordable housing products.
INR 120 crore in fresh equity has been infused into a Chennai-based housing finance company by two private investors to accelerate lending to lower- and middle-income households across under-served cities. The capital round is expected to lift the firm’s net worth to beyond INR 210 crore and support rapid branch and loan book expansion in smaller towns and cities.
The equity investment will be used primarily to scale operations across Tier II and Tier III markets where demand for affordable housing finance is rising. The company plans to deploy the funds to increase lending capacity, widen its branch network, and enhance its digital platforms to shorten loan turnaround times for self-employed and middle-income borrowers.
Incorporated in March 2023, the lender has grown quickly since starting operations in December 2023. In an 18-month span it opened multiple branches and built assets under management of around INR 500 crore. The current branch footprint covers 86 locations across seven states. Average loan ticket sizes range between INR 13 lakh and INR 15 lakh, focused on home construction and loans against property.
The business is led by a managing director and chief executive officer who previously helped build a large housing finance portfolio at an established lender. The company was founded by two industry entrepreneurs and has adopted a fully digital operating model to reach customers who have limited formal credit histories or banking experience.
The firm emphasizes fast processing and low friction for applicants, combining a digital-first loan origination platform with regional field teams. Paper-based checks and in-person verification that once took days have been compressed into minutes through the use of cloud-hosted loan management systems and automated workflows. Management aims to target first-time buyers, self-employed borrowers, and households in less developed districts who are typically underbanked.
The company uses a cloud infrastructure and banking software suite to automate core finance and loan functions, including collections and recovery. Management reports improvements in uptime, lower cloud costs, faster product rollouts and materially shorter disbursement cycles as a result. The firm is planning a consumer-facing mobile application that will connect homeowners with a community of tradespeople to simplify construction projects and generate leads through service contractors.
One investor backing the round manages several billion rupees across debt and equity funds and has a portfolio spanning food, beverage and consumer brands. The other investor is an early-growth backer incubated by a development finance platform and focuses on financial services and climate solutions. An independent advisory boutique acted as the exclusive financial advisor to the transaction.
Investor representatives described the affordable housing finance segment as a large and growing opportunity that legacy lenders often underserve, noting the potential for sizable market growth over the coming decade. They framed this deal as support for a lender that combines regional reach, digital processing and risk controls to serve first-time and lower-income home borrowers while targeting sustainable returns.
The firm competes with other established affordable housing finance companies that operate across comparable customer segments. Management has set explicit growth targets, including a multi-year plan to scale assets under management toward a large institutional target and to acquire tens of thousands of customers as branches and digital channels expand.
Affordable housing finance is viewed as a key vector for financial inclusion, letting households in smaller towns access capital for home construction and purchase. By combining cloud-based processing with local origination teams and a lower average ticket size, the lender seeks to reduce friction for borrowers who are typically excluded by mainstream banks and large incumbents.
The company raised INR 120 crore through an equity infusion from two private investors specializing in growth and financial services backing.
Funds will be used to scale lending operations across under-served Tier II and Tier III cities, expand the branch network, enhance digital platforms and support loan origination and disbursement capacity.
Primary offerings include home construction loans and loans against property, with average ticket sizes between INR 13 lakh and INR 15 lakh.
Target customers are first-time home buyers, self-employed borrowers and middle-income households in smaller towns and rural areas who are underbanked or have limited formal credit histories.
The lender uses a cloud-based loan management platform and enterprise financial systems to automate origination, document handling and collections, enabling significantly faster approval and disbursement cycles.
Since operations began, the company expanded to 86 branches across seven states and built a loan portfolio of roughly INR 500 crore within 18 months.
| Feature | Detail |
|---|---|
| Funding | INR 120 crore equity infusion |
| Post-investment net worth | Expected > INR 210 crore |
| Incorporation | March 11, 2023 |
| Operations start | December 2023 |
| Branches | 86 across seven states |
| AUM (approx.) | INR 500 crore in 18 months |
| Average ticket size | INR 13–15 lakh |
| Products | Home construction loans, loans against property |
| Operating model | Fully digital origination and loan management |
| Target customers | Self-employed, middle-income, first-time buyers in Tier II/III |
| Strategic advisor | Exclusive financial advisor led the transaction |
| Competitive set | Other affordable housing finance companies serving similar segments |
| Growth ambition | Multi-year AUM and customer acquisition targets to scale nationwide |
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