Aptus Value Housing Finance raises $40 mn from WestBridge, Caspian

Chennai-based Aptus Value Housing Finance India Ltd has raised Rs 270 crore (around $40 million) in a follow-up round from WestBridge Capital Partners LLC and Caspian Impact Investment Advisors, the home finance company said in a statement.

The firm, which focuses on self-employed middle-income customers, has raised equity capital worth Rs 245 crore from a fund managed by WestBridge and the rest from India Financial Inclusion Fund (IFIF), a scheme advised by Caspian Impact Investment Advisors.

The firm said it will use the proceeds to expand its network and asset under management (AUM) over the next four years, with a projected portfolio of over Rs 5,000 crore. 

This is the second round of investment for the PE firms in the company. WestBridge had put in around Rs 100 crore in 2014 to back the lender while Caspian had invested around Rs 30 crore back in 2012.

M Anandan, founder and chief operating officer, Aptus Value Housing, said, “Aptus aims to build a market leading financial services franchise focused on affordable housing.”

“Financial inclusion is an important policy agenda for Prime Minister Narendra Modi and the government and we believe it has the potential to transform India. WestBridge is fortunate to be investors with Aptus, and supports its mission of serving micro-entrepreneurs in the informal economy,” said KP Balaraj, managing director, WestBridge Capital India Advisors.

Aptus focuses on extending housing finance facilities to informal middle-income customers. It claims that it follows an approach of studying cash flow cycles and income profiles associated with each customer before the credit approval.

Based in Chennai, it aims to cater to the large under-served housing market of informal income customers by offering loans in the ticket sizes of Rs 5-15 Lakh.

“Aptus’ team has made mortgage finance to the self-employed accessible and affordable. These small business owners and their families are largely underserved by the formal financial system. As an impact investor, Caspian is delighted to continue its long association with Aptus,” said Mona Kachhwaha, investment director, Caspian Impact Investment Advisers. 

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