The United States International Development Finance Corporation (USIDFC) has guaranteed a $5 million (Rs 37 crore) debt financing for Aviom India Housing Finance Pvt Ltd by the impact investment arm of IndusInd Bank Ltd.
New Delhi-based Aviom is an affordable housing finance firm catering to rural and semi-urban parts of India.
The commitment marks the second time in two months that the USIDFC has guaranteed a debt fundraising exercise for a company by IndusInd.
In June 2020, VCCircle reported that Aviom had secured $3.7 million (around Rs 26 crore) from existing investor Gojo & Company, Inc., a Japan-based firm that holds stakes in microlenders. That investment marked Gojo’s third in the country following the Covid-19 lockdown.
The Bengaluru-based boutique investment bank Unitus Capital acted as the sole adviser to the exercise in review. Aviom said that it will use the funds for lending to low-income women to help them with their home-focussed goals.
“We will continue with our efforts in providing financial sustenance to women who do not have access to a formal source of finance,” company founder, managing director and chief executive officer Kajal Ilmi said.
USIDFC executive Charity Wallace added that the guarantee was in line with the development institution’s strategic priority of empowering women and their livelihoods.
IndusInd Bank executive Roopa Satish said that the guarantee from the USIDFC would eliminate foreign exchange rate fluctuation risk from Aviom’s balance sheet and strengthen its lending process.
Aviom was set up in 2016 and offers solutions to under-served and under-banked informal income segments in rural and semi-urban markets.
The company says that it provides loans for home purchases and construction, home extension and improvement, and loans against property.
According to VCCEdge, the data research arm of Mosaic Digital, Aviom reported net sales of Rs 20.65 crore for the 2019 financial year, with profit-after-tax figure of Rs 1.45 crore for the same period.