Incofin invests INR 35 crores or USD 4.3 million in India’s rural affordable housing finance market by partnering with Varashakti Housing Finance (VHF) becoming its first institutional investor. The series A funding comes from the Incofin India Progress Fund.
VHF, led by Ms. Sahaana Sankar, focuses on the rural housing finance market, offering loans for asset creation in three South Indian states. With the loans benefiting women, who serve as either primary borrower or co-applicant, VHF has catered more than 4,200 borrowers till date. This ensures that women have equal rights and access to finance and opportunities for asset creation.
Director of VHF, Ms. Sahaana Sankar, founded VHF in 2017 with a mission make the aspirational dream homes of low-income households a reality. “We are excited to join forces with Incofin. This funding allows us to expand our business, scale up the organisation and further impact the lives of the rural underserved segment and enhance overall borrower experience. We will benefit immensely from Incofin’s global experience and value creation and look forward to including them in our journey!”
The Incofin India Progress Fund (IPF), launched in 2021, is a private equity fund to support promising entrepreneurs with growth capital. Financial incuclusion is one of the two main focus points for the impact fund. Commenting on IPF’s third investment in ihe financial inclusion space, Aditya Bhandari, Partner and Regional Director Asia Equity for Incofin: “With this investment, Incofin reinforces its mission to invest with a gender lens and to support climate resilient solutions. We see a large opportunity in the rural Indian affordable housing finance industry and believe that VHF’s experienced team together with its strong technology platform will realise success while achieving deep impact goals.”
As of June 2023, VHF offers home loans, home improvement loans, loans against property, small ticket business loans and reported an asset under management of INR 119 crores with 28 branches. VHF aims to reach an asset under management of INR 1,750 crores by catering to 30,000 borrowers in the next five to seven years.