Vridhi Home Finance has successfully raised ₹310 crore in equity funding, led by Norwest Venture Partners, alongside contributions from existing investor Elevation Capital and the company’s founders. This significant investment follows the company’s earlier success in October 2023 when it garnered $18 million from Elevation Capital during its initial institutional funding round.
In a recent announcement, Vridhi Home Finance highlighted its commitment to enhancing its distribution network, improving risk management practices, and upgrading its technological infrastructure to establish a seamless digital home loan experience.
Since its launch in 2022, Vridhi Home Finance has made substantial strides, now operating 51 branches across five states: Karnataka, Andhra Pradesh, Rajasthan, Madhya Pradesh, and Telangana. The company has successfully built assets under management totaling ₹200 crore.
With this fresh influx of capital, Vridhi aims to penetrate new markets while refining its digital onboarding process, covering all aspects from loan application to disbursement and servicing. The firm primarily targets small towns with populations ranging from 3,000 to 500,000, offering home loans between ₹3 lakh and ₹45 lakh.
Sunku Ram Naresh, CEO of Vridhi Home Finance, expressed the company’s vision, stating, “Our goal is to become the preferred financier for self-employed individuals and those with informal income, helping them realize their home ownership aspirations. By creating an omnichannel presence and delivering exceptional service through our phygital model, we aim to make home ownership attainable for traditionally underserved segments.”
Mridul Arora, a partner at Elevation Capital, commented on the funding, noting that the affordable housing finance sector represents a substantial opportunity largely overlooked by banks and larger financial institutions. He believes that Vridhi Home Finance’s unique approach to customer experience positions it well to seize this opportunity.