PremjiInvest leads $48m round for India's Shubham

According to a report in the Economic Times linked from Shubham's Twitter feed, Accion and Saama Capital exited their entire stakes to PremjiInvest for INR700 million. Existing investors Helion Venture Partners and Elevar Equity joined PremjiInvest to commit INR2.4 billion for newly issued shares in Shubham. Shubham's CEO told Livemint that Helion and Elevar committed INR100 million each.

The new capital will be used to increase Shubham's loan portfolio from INR10 billion to INR50 billion over the next four years. Shubham focuses on providing home loans to urban families whose income is primarily generated through the informal market. It has branches in 12 states and claims to have provided loans to over 26,000 households since its founding in 2010.

Helion and Elevar invested $2 million in Shubham in 2010, with Accion and Saama joining the existing investors for an $8 million funding round in 2012. According to AVCJ Research all four investors took part in a subsequent $20 million funding round alongside Motilal Oswal Private Equity in 2014.

A number of Indian mortgage lenders have raised private equity-backed funding rounds in the past year, such as Ummeed Housing Finance, Can Fin Homes and Aavas Financiers. The sector is expected to benefit from a number of government initiatives aimed at increasing the country's affordable housing stock.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Financials
• Consumer
• Expansion
• Trade sale
• India
• Financial Services
• Helion Ventures