Bengaluru-based Vridhi Home Finance said Tuesday it has raised Rs 310 crore ($36.9 million) in a Series B round led by multi-stage investment firm Norwest Venture Partners.
Existing venture capital investor Elevation Capital also joined the round, it said in a statement.
The company intends to use the the fresh capital to expand in existing markets and bolster its tech infrastructure.
Vridhi gives out home loans in the range of Rs 3 lakh to 45 lakh and operates in smaller towns with populations between 3,000 and 500,000.
“By establishing an omnichannel presence and ensuring exceptional service delivery through our phygital model, we are making home ownership accessible to traditionally underserved segments,” said Sunku Ram Naresh, founder, MD and CEO at Vridhi Home Finance.
The company was founded by Sunku Ram Naresh, Sandeep Arora, and Sunil Mehta. Last year, early-to-growth stage VC firm Elevation Capital led the startup's Series A round, infusing Rs 150 crore.
In the financial year ending March 31, 2023, the company incurred a loss of Rs 2.87 crore and generated Rs 1.12 crore in total income, as per VCCEdge data.
Naresh is a former CBO at Aavas Financiers and has worked at companies like Nestle, ICICI Bank, GE Money and Bajaj Finance. Arora previously worked at Kotak Mahindra Bank, Dhani Financial Services and Bajaj Finserv. Mehta is a former CFO at venture capital firm Iron Pillar.
Since its founding in 2022, the company says it has expanded its operations to five states—Karnataka, Andhra Pradesh, Rajasthan, Madhya Pradesh and Telangana. It now has assets under management of over Rs 200 crore and operates 51 branches.