Vridhi Home Finance, a rising star in the home lending fintech realm, has clinched a noteworthy Rs 150 crore ($18 million) in its Series A funding , with Elevation Capital spearheading the investment.
In a recent dialogue Sunku Ram Naresh, the CEO and co-founder of Vridhi, delineated the company’s aspirations. “A chunk of the funds will be funneled into tech advancements. Concurrently, we’re charting out plans for branch expansion and talent acquisition,” elucidated Naresh.
The startup, with its roots in Bengaluru, has set its sights on launching an additional 25-30 branches. These new hubs are projected to grace Karnataka, Andhra Pradesh, and Telangana over the subsequent 12-18 months. Addressing the staffing plans, Naresh indicated, “For an enterprise of our magnitude, we envisage a team of 7-8 members per branch. Our recruitment drive will span across diverse roles, targeting major to even the smaller tier IV cities.”
Vridhi, which came into existence in 2022, was the brainchild of Naresh, Sandeep Arora (the present COO), and Sunil Mehta (the CFO). With a primary objective of curating a conduit for secured housing loans, the firm predominantly serves the salaried and self-employed populace in India’s emerging cities. Their combined acumen, amassing 75 years in the banking and finance arena, fortifies Vridhi’s foundational core.
With future endeavours in view, Vridhi contemplates procuring debt funding from banking behemoths and financial institutions. “A robust capital foundation paves the way for engaging with top-tier banks,” voiced Naresh.
Vridhi’s data insights unravel an intriguing narrative of the Indian housing finance panorama. Despite a notable AUM of $300 billion for housing loans, the sector exhibits significant untapped potential. The recorded CAGR from FY 18-21 stood at 12%. Vridhi’s offerings, centered around secured housing loans, cater to an average loan bracket of Rs 6-8 lakh.
Currently, Vridhi’s clientele encompasses 350-400 patrons, with the figures growing by 80-90 every month. Before this significant influx from Elevation Capital, Vridhi’s operations were bootstrapped.
Mridul Arora, a prominent figure at Elevation Capital, remarked on the broader spectrum. “India’s mortgage landscape is still in its nascent stages, especially when juxtaposed with other emergent economies. With a mere 11% of the GDP representation, the vast expanse for growth is undeniable. Vridhi’s mission of democratizing credit access stands as a testament to fostering wider financial inclusion.”
