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.
A Chennai-based housing finance company has raised INR 120 crore in an equity round from two institutional investors to scale lending in smaller Indian cities. The infusion is expected to lift the lender’s net worth to more than INR 210 crore, and the funds will be used to expand operations across under-served Tier II and Tier III markets.
The capital injection arrives as demand for affordable housing finance grows rapidly outside major metros. The company intends to deploy the funds to widen its branch network, deepen local outreach, and support a higher volume of loans aimed at lower- and middle-income households who are currently under-served by large legacy lenders.
Incorporated in March 2023 and starting operations in December 2023, the lender has moved quickly. In about 18 months it built an asset base near INR 500 crore and opened 86 branches across seven states. The business uses a fully digital operating platform and targets self-employed and middle-income borrowers with quick decision timelines.
Product offerings focus on home construction loans and loans against property, with an average ticket size of roughly INR 13 lakh to INR 15 lakh. The lender aims to keep turnaround times short to serve customers who may have limited credit history or minimal formal banking experience.
The round was led by an alternative asset manager and a financial services investor that backs early-growth companies. An exclusive financial adviser managed the transaction. Investor commentary frames the move as a bet on the long-term size of India’s affordable housing finance market and on the lender’s regional approach combined with digital operations and risk controls.
The lender has adopted a cloud-based banking stack to speed loan processing, manage documents and collections, and meet regulatory data localization requirements. The technology shift is credited internally with lowering cloud costs, improving uptime, and enabling faster rollout of new products. The firm also reports that many paper-based steps are now completed in minutes, allowing rapid post-approval disbursements.
The firm’s leadership includes executives with prior experience building large housing finance portfolios. The management team’s stated goals include scaling assets under management to deliver wider access to housing finance; the company has set an ambition to build to a substantially larger portfolio over the coming years and acquire a significant number of customers focused on first-time home ownership.
The affordable housing finance segment is attracting attention as urbanization, regulatory support and rising demand for first homes create a large addressable market. The lender competes with several established players in the affordable segment. Investors and the company see opportunity in serving borrowers who need smaller loans, local underwriting sensitivity, and faster service than legacy institutions typically provide.
With fresh equity in place, the lender will likely focus on expanding its branch footprint, hiring regional loan officers, accelerating digital features, and piloting new customer acquisition channels, including a planned mobile application to connect homeowners with local construction service providers that can also serve as a lead channel for loans.
The company received an equity infusion of INR 120 crore.
The investment came from two institutional investors focused on financial services and growth-stage businesses.
Funds will be used to scale operations across Tier II and Tier III cities, expand the branch network, support loan growth, and enhance digital capabilities.
Average loan tickets are in the range of INR 13 lakh to INR 15 lakh.
The company offers home construction loans and loans against property, targeting lower- and middle-income households and first-time buyers.
The lender uses a fully digital operating model with cloud-based loan management, aiming for fast turnaround and streamlined disbursements.
An advisory firm acted as the exclusive financial advisor to the transaction.
The company has set multi-year targets to grow assets under management and increase customer count substantially, with specific internal milestones planned over the next five years.
| Feature | Details |
|---|---|
| Funding amount | INR 120 crore (equity) |
| Post-funding net worth | Expected to exceed INR 210 crore |
| Use of funds | Scale operations in Tier II and Tier III cities, branch expansion, tech and product rollout |
| Incorporation date | March 11, 2023 |
| Operational launch | December 2023 |
| Branches | 86 branches across seven states (since launch) |
| Assets under management | About INR 500 crore in 18 months |
| Products | Home construction loans; loans against property |
| Average ticket size | INR 13 lakh to INR 15 lakh |
| Operating model | Fully digital, cloud-based loan management and collections |
| Target customers | Self-employed, middle-income households, first-time home buyers in smaller cities |
| Deal adviser | Exclusive financial adviser managed the transaction |
| Competition | Established affordable housing finance firms operating in the same segment |
| Growth ambition | Significant AUM and customer growth planned over the next five years |
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