Delhi-based Aviom India Housing Finance Pvt. Ltd, which provides affordable housing loans to low-income individuals and families, has raised Rs 15 crore ($2.3 million) from Insitor Impact Asia Fund in its Series A round of funding.
The funds will help two-year-old Aviom enhance branch network and operations in tier 2 and tier 3 towns in the states where it is already present and expand to other states, it said in a disclosure. Currently, it has 14 branches in Rajasthan and Madhya Pradesh.
“Affordable housing is a critical need for the low-income population who don’t have access to capital due to lack of formal documentation, financial literacy and presence of mid-level players. This is the segment we intend to assist. Also, since the first loan applicant is a woman, this will help create financial independence and raise women’s status at home and society,” said Kajal Ilmi, founder, Aviom.
Aviom has raised debt capital worth Rs 17.5 crore from banks and NBFCs and intends to raise Rs 100 crore more in six months. As of 31 January 2018, Aviom had disbursed 956 loans worth Rs 31 crore.
The firm provides loans without income documents for buying, improving and extending homes to families from unorganised sectors in tier 2 and tier 3 towns along with legal and technical counselling to help homebuyers make an informed decision.
“Aviom is addressing a critical need gap in an underserved market by making credit available to the undocumented income segment,” said Nicholas Lazos, co-founder and investment director of Insitor Impact Asia Fund.
Insitor is an impact venture capital fund financing companies that offer low-income families options for increased access to healthcare, education, affordable housing, water, sanitation and clean energy. The fund invests in India, Myanmar, Cambodia and Pakistan.
Other companies it has backed in India include BioSense Technologies, Mera Gao Power and Sustaintech India.
Around two years ago, Prime Minister Narendra Modi launched the ‘Housing for All’ scheme to provide housing facilities to everyone in urban areas by 2022. During the Budget 2018 speech last week, Finance Minister Arun Jaitley said a dedicated affordable housing fund (AHF) linked to National Housing Bank will be launched. The AHF will be funded through fully serviced bonds authorised by the government.
Investment advisory firm Unitus Capital, was the financial advisor to Aviom for the transaction.
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