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Vastu Housing Finance Corporation Limited (“Vastu”) has closed a fund raise from Faering Capital, founded by Aditya Parekh and Sameer Shroff. The transaction is a secondary sale by funds managed by Multiples Alternate Asset Management and other shareholders of the company.
Vastu is a digitally enabled retail affordable housing finance company with a pan-India presence. With a technology-first approach and strong credit underwriting principles, Vastu has grown rapidly to an AUM of c.US$900 million, serving 15 states across India in 200+ markets.
Vastu’s award-winning proprietary 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 Finserve 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.
Vastu is among the fastest institutionally built and professionally led platforms to be rated at [ICRA] AA- and CARE AA- Stable and holds the highest rating on a short-term scale of [ICRA] A1+. Vastu’s asset quality is amongst the best in class, and it has been sustainably profitable with a PAT of over INR 285 crore in FY23. The company’s board of directors includes former RBI deputy governor Shyamala Gopinath, former global head of retail banking at Standard Chartered Bank, Viswanathan Ramachandran, former head of audit at KPMG, Natrajan Ramakrishna, former Chairman and Managing Director of Andhra Bank, R S Reddy, former Managing Director of NIIT Ltd, Vijay Kumar as Independent Directors.
Sudhir Variyar, MD and Deputy CEO of Multiples Alternate Asset Management Ltd. said, “We warmly welcome Faering Capital as shareholders of the company and look forward to working with them going forward. This 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.”
Sandeep Menon, Founder, MD & CEO, Vastu said, "We are happy to have Faering Capital join us as a valued partner. Aditya, Sameer and 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 & Managing Director of Faering Capital said, “We are excited to partner with Sandeep and team and other shareholders in the Vastu journey. 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 build a highly profitable, large and respected institutional franchise focused on affordable housing finance.”
