Private equity firm Multiples PE has led a Rs 1,000-crore ($118 million) Series F round of investment in Shubham Housing Development Finance Company Ltd, the mortgage lender said Tuesday.
Existing investors Asian Development Bank and British International Investment also participated in the round, Shubham Housing said in a statement.
The announcement comes less than two months after VCCircle reported in October, citing the lender’s chief executive officer Sanjay Chaturvedi, that Shubham Housing was planning to bring a new investor on the cap table.
The deal comprises a primary issuance of Rs 400 crore and a secondary purchase from early investors, the lender said. It didn’t disclose any details of the secondary transaction.
Shubham Housing has been operational for around 13 years and was founded by Chaturvedi and Rupa Basu. Its other investors include Helion Ventures, a venture capital firm that is now managing only its legacy funds, as well as private equity firms LeapFrog and Motilal Oswal Alternates.
The lender also said that Renuka Ramnath-led Multiples PE will hold a significant minority stake in the affordable housing company after the investment and its managing director Nithya Easwaran will join the company’s board.
Multiples PE invests in financial services, pharma and healthcare, consumer and technology sectors. Some of its investments in the financial services sector include India Energy Exchange, Cholamandalam Finance, Kogta Financial, Veritas Finance, Svatantra Microfinance, Vastu Housing Finance, APAC Finance, and ACKO.
Meanwhile, Gurugram-based Shubham Housing will use the fresh funds to drive growth and expand its footprint. Currently, the housing finance company operates across 12 states through over 160 branches.
Shubham Housing’s assets under management have grown at a compound annual growth rate of 28% in the last five years, aided by growth in disbursements. The company intends to increase its assets under management to Rs 6,500 crore by the end of the current financial year from Rs 4,553 crore as on June 30.
Avendus acted as the exclusive financial advisor to Shubham Housing and its shareholders on the transaction.
