Vastu Housing Finance raises $200 million from a consortium of investors

 With this investment, Vastu will further scale operations in existing locations, explore new markets and invest in next-generation technology platforms

Vastu Housing Finance Corporation (Vastu) has raised about $200 million from a consortium led by Norwest Venture Partners, Creation Investments and IIFL Asset Management to fund business expansion plans.

The transaction has two components involving primary equity infusion of about $125 million and balance is secondary sale by current investors. This transaction is the largest private equity growth investment in the affordable housing segment in India, till date, the company said in a late night statement.

Sandeep Menon, Founder, MD & CEO, Vastu said with this investment, Vastu will further consolidate operations in 13 states. It will build products to provide easy, faster and affordable credit to 900 million people residing in these states.

Vastu was set up in 2015 by Sandeep Menon and Sujay Patil, backed by funds managed by Multiples Alternate Asset Management (Multiples) and senior industry leaders from the BFSI sector. Vastu is a digitally enabled retail affordable housing finance company. with a pan-India presence.

Vastu has grown rapidly to an Assets Under Management of approximately Rs 3,000 crore ( about $400 million, serving 13 states across India, in 100 markets and 1,200+ employees.

With this investment, Vastu will further scale operations in existing locations, explore new markets and invest in next-generation technology platforms. It plans to hire 1,000 additional team members across functions over next 12 months.

Vastu has also set up a non-banking finance company (NBFC) – Vastu Finserve, for vehicle and MSME financing to become a diversified consumer lender serving all credit needs of middle and aspiring India.