Faering invests $30m in India's Vastu, Multiples exits
Faering Capital has invested USD 30m in India’s Vastu Housing Finance, facilitating an exit for Multiples Alternate Asset Management.
Multiples incubated and launched Vastu in 2017 and made an investment of undisclosed size in 2019 from its second fund, which was mandated to deploy in a range of USD 500-USD 100m. That fund – which closed on USD 685m in 2016 – realised a partial exit from Vastu in 2021, when IIFL Asset Management, Creation Investments, and Norwest Venture Partners invested about USD 195m.
Faering is investing via its third fund, which closed on USD 346m last year. The firm writes cheques up to USD 40m; financial services are a preferred sector. It was active in non-bank lending as recently as March 2022, when it backed a USD 65m round for small business-focused Finova Capital that also featured Norwest.
Vastu positions itself as a tech-enabled operator, facilitating home loans through the use of data science and analytics, providing a completely paperless and faster user experience. Vehicle financing and small business lending are growth areas. It has more than 40 lending relationships with public and private banks and other financial institutions.
The company has more than 200 branches in 15 states across India and claims assets under management of around USD 900m. As of September, it had served more than 80,000 people with monthly income of USD 500, most of whom don’t have formal access to credit from financial institutions due to lack of documented income.
“Housing finance and specifically affordable housing are multidecadal opportunities in India,” Aditya Parekh, co-founder of Faering, said in a statement. “Having tracked Vastu’s progress over the last few years, we are confident that the company is well on its way to build a highly profitable, large and respected institutional franchise focused on affordable housing finance.”
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