Faering Capital invests $ 30m in Vastu Housing Finance

Vastu Housing Finance Corporation Limited (Vastu) has closed a fund raise from Faering Capital, a private equity fund founded by Aditya Parekh and Sameer Shroff. 

The transaction involving investment of $ 30 million by Faering in Vastu is a secondary sale by funds managed by Multiples Alternate Asset Management and other shareholders of the company. 

This is Faering Capital’s  third investment from its $346 million Fund 3 which had a final close in November 2022.  Till date, this PE firm has raised over $ 720 million of capital across three funds and has partnered with 29 companies. 

Vastu, which recorded a net profit of ₹ 285 crore in 2022-23, is a digitally enabled retail affordable housing finance company with a pan-India presence. 

With a technology-first approach and strong credit underwriting principles, Vastuhas grew rapidly to an AUM of $ 900 million, serving 15 States across India in 200+ markets. 

“Valued partner”

Sandeep Menon, Founder, MD and CEO, of Vastu said, “We are happy to have Faering Capital join us as a valued partner. Aditya, Sameer and the team have great domain knowledge in our industry and have been long-term supporters of Vastu. We look forward to having them as long-term shareholders.”

Aditya Parekh, Co-founder and Managing Director of Faering Capital said, “We are excited to partner with Sandeep and team and other shareholders in the Vastujourney. Housing finance and specifically affordable housing are multidecadal opportunities in India. 

Having tracked Vastu’s progress over the last few years, we are confident that the company is well on its way to building a highly profitable, large and respected institutional franchise focused on affordable housing finance.”

Expansion

Vastu’s technology platform, PULSE, has enabled a completely paperless digital experience and faster turnaround times for customers. 

Towards the goal of becoming a mortgage-led consumer lender serving the credit needs of emerging and aspiring India, Vastu has also set up a non-banking finance company (NBFC), Vastu Finserv in 2019, venturing into vehicle and MSME finance.

Creating social impact lies at the core of Vastu, which focuses on lending to the low-middle income, mainly self-employed segment and backing women borrowers.  

 Vastu has more than 40 lending relationships across leading public and private sector banks and leading financial institutions including National Housing Bank (NHB), State Bank of India (SBI), Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Union Bank, HSBC and others.

Sudhir Variyar, MD and Deputy CEO of Multiples Alternate Asset Management Ltd said, “This (transaction) marks another milestone in our partnership with Vastu, witnessing the evolution of a shared vision that has led to the establishment of an accomplished institution. Vastu’s growth mirrors Multiples’ commitment to fostering a long-lasting impact and driving profits with purpose.”


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