Gurgaon-based Shubham Housing Finance raises INR 122 Crore in Series C funding

Provider of formal housing credit solutions like home loans and home improvement loans for individuals with informal income, Shubham Housing Development Finance Company (Shubham) has raised Series ‘C’ funding of INR 122 crore. This round is led by funds/investors managed/advised by Motilal Oswal Private Equity along with existing investors- Helion Advisors, Elevar Equity, Accion Frontier and Saama Capital.

Headquartered in Gurgaon, Shubham has grown over the last three years to reach a customer base of more than 4,500 families and an asset book of ~INR 235. The company plans to use the fresh round of funds to further expand its housing loan portfolio.

Founded in 2010, Shubham is led by two seasoned banking professionals, Sanjay Chaturvedi and Ajay Oak. Shubham Housing Development Finance Company provides formal housing credit to those with informal incomes and also offer customised credit program for customers. To do this, Shubham extensively engages with the customers in a discussion about their – where they come from, what they do, how they earn, spend and save.

The founders’ vision to identify and solve the problem of bringing access to housing finance for the informal income groups has helped Shubham scale. Ajay Oak, Co-founder and COO, Shubham commented on the recent funding,

The current funding comes at a time when Shubham is poised to grow the asset book multiple times and expand its distribution reach to 150 cities. Our partnership with early investors has helped us focus on the business model and achieve our capital goals. The credit rating of BBB by ICRA has also helped us attract more funds.

Helion Advisors and Elevar Equity have been associated with Shubham since the beginning. Helion has made an investment of $6.5 million so far. Rahul Chandra, Managing Director, Helion Advisors, spoke on their third round of investment in Shubham,

Shubham resonates with Helion’s belief in backing strong teams who create long lasting companies around massive opportunities. Helion is impressed by the scale that Shubham has built over the past 3 years, their sharp focus, execution model and unique intelligence in lending.

Related read: India focused $600+ M Helion fund has made six investments this year, what’s next?

Shubham provides home loans and home improvement loans ranging between INR 1Lakh to INR 15Lakh. It is currentlyfunctional in 12 states of India;Maharashtra, Gujarat, Madhya Pradesh, Rajasthan, Chhattisgarh, Jharkhand, Uttar Pradesh, Uttarakhand, Delhi, Haryana, Punjab and Bihar.

Meet the new investors: Motilal Oswal Private Equity

MOPE Investment Advisors Pvt. Ltd. (MOPE) is a subsidiary of Motilal Oswal Financial Services Ltd. (MOFSL), a diversified financial services group with businesses in Securities, Asset Management, Private Equity and Investment Banking. MOPE is currently managing two growth capital funds i.e. India Business Excellence Fund (IBEF) and India Business Excellence Fund II (IBEF II) focused on providing growth capital to mid market companies, typically in the range of US$ 10-20 million, across sectors. Raamdeo Agrawal, Co-Founder of Motilal Oswal Financial Services and Chairman of Motilal Private Equity said

We were highly impressed by what Sanjay, Ajay and their team has been able to achieve in the last three years. Housing finance is a large opportunity and Shubham is a differentiated model and is well poised for high growth. We are delighted to be partnering with Sanjay, Ajay, Helion Ventures, Elevar Equity, Saama Capital and Accion in the next phase of Shubham’s journey and we are confident that over the next few years Shubham would emerge as one of the largest and highly respected housing finance company focused on informal sector of Indian economy.

 Also read: Helion announces organisational change, Kanwaljit Singh to step down