CHICAGO and MUMBAI, India, Oct. 28, 2021 /PRNewswire/ — Vastu Housing Finance Corporation Ltd., a leading Indian affordable housing finance company, has raised US$200 million from institutional investors in the U.S. and India as it seeks to help millions of Indians fulfill their dreams of home ownership.
Chicago-based Creation Investments Capital Management LLC, a global alternative asset manager and leading impact manager in emerging markets, and Palo Alto, Calif.-based Norwest Venture Partners, a global venture and growth equity investment firm, are co-leading the Series C funding round with each investing US$75 million in Vastu. Mumbai-based IIFL Finance, one of India’s largest financial services companies, is investing US$50 million.
Vastu’s award-winning proprietary technology platform PULSE helps customers estimate and demonstrate their undocumented income to access credit solutions. As of July 2021, Vastu has provided financial assistance to more than 35,000 customers, most of whom don’t have formal access to credit from financial institutions in India because they lack documented income.
“Our mission is to provide easier, faster and simpler access to own affordable homes for millions of Indians who have limited access to formal channels of credit,” said Sandeep Menon, founder, managing director and CEO of Vastu. “We are pleased to receive this significant support from capital partners Creation, Norwest, IIFL and continued support from the majority investor, Multiples Private Equity.”
“This is Creation’s biggest investment to date and we are delighted to support Vastu, whose goal aligns with ours—to help those at the bottom of the economic pyramid secure sorely needed financial resources,” said Tyler Day, a partner at Creation. “We feel that Vastu’s capabilities, operations and systems are industry leading and we have great confidence that Vastu will continue to scale swiftly and expand operations while maintaining high underwriting standards.”
“We are excited to partner with Vastu on this journey in building one of India’s fastest growing, highly profitable, tech-enabled financial services platforms,” said Niren Shah, managing director and head of Norwest Venture Partners India. “It is clear that Vastu’s differentiation lies in its experienced and high-energy team and its investments in technology, data and analytics.”
Multiples Private Equity, founded by Renuka Ramnath in 2009, was the first institutional investor in Vastu in 2015, and remains the …….