Low-cost housing developer Janaadhar (India) Pvt. Ltd has raised funding from a UK-based affordable housing impact investor and existing investors, a top executive told VCCircle.
Late last year, the Bengaluru-based developer had inked a financial partnership deal with impact investor Reall. “As part of the partnership, we have been able to raise debt capital of Rs 49.5 crore ($6.7 million) from Reall. The modus operandi of Reall is to strike a partnership with a firm and then invest on a project-to-project basis. This time they have backed us for a project in Ahmedabad and our precast factory,” said Shikha Parakh, general manager – business development and corporate affairs, Janaadhar.
“We are likely to take this partnership ahead and raise more capital in the future on an opportunity basis,” she added.
The latest round has also seen Janaadhar’s existing investor put in additional capital. “Our existing investors including Tree Line, Caspian, Vikram Gandhi and other individual investors have collectively put in around Rs 22.5 crore ($3.1 million). These investors have put capital in the form of equity,” she said.
The Economic Times had first reported the development.
Parakh also said that the company is in talks with a few development finance institutions and banks for raising a bigger round through a mix of debt and equity.VCCircle had reported last year that Janaadhar had brought precast building startup Ingenious Quality Buildings Pvt. Ltd under its fold through a merger.
Reall is funded by the UK’s Department for International Development and the Swedish International Development Agency.
The partnership with the Bengaluru developer marks Reall’s first step in India’s affordable housing segment.
As its core strategy, Janaadhar aims to fill the shortage of 10 million units in affordable housing.
The company says it has delivered 1,500 homes for the economically weaker section and low-income group (LIG) across Karnataka and Gujarat so far. It also claims to be one of the only firms that has successfully delivered LIG houses under Rs 20 lakh via a profitable and scalable model while securing government subsidies for clients.