Housing finance company Sewa Grih Rin Ltd, which operates under the Sitara brand, has raised Rs 120 crore (around $14.4 million) in debt from British International Investment, the UK’s development finance institution.
The Delhi-based company will use the funds to enhance its loan book, expand operations into new locations and continue to provide access to finance for home construction and home improvements, Sitara said in a company statement.
Axis Bank has facilitated this deal between BII and Sitara.
“The investment from BII will serve as a catalyst for Sitara's expansion, empowering us to amplify our efforts in supporting the underserved,”said Shruti Gonsalves, managing director and chief executive officer at Sitara.
A key focus of this partnership is to extend home loans to women from the informal sector, thereby contributing to financial inclusion and women's economic empowerment, she added.
Founded in 2015, Sitara specialises in delivering financial solutions to underprivileged and low-income households, with a particular focus on women working in the informal sector.
It provides loans ranging from Rs 50,000-30 lakh for house construction, extension, purchase, and renovation. Currently operational in nine states, the company's mission is to address the housing needs of those often overlooked by traditional financial institutions.
Gaurav Malhotra, director - financial services, BII, underscored the significance of the deal against the backdrop of India's housing crisis exacerbated by urbanisation and migration.
BII has investments in over 1,470 businesses across 65 countries and total assets of £8.1 billion. Aligned with the UK government’s Clean Green Initiative, BII invests to create productive, sustainable, and inclusive economies. Over the 2022-2026 period, BII aims for at least 30% of its new commitments to be in climate finance. As a founding member of the 2X Challenge, which has raised over $16 billion, BII is actively contributing to empowering women’s economic development.
