Aham Housing Finance raises Rs 100 Cr from The Sanmar Group

Chennai-headquartered Aham Housing Finance has raised Rs 100 crore in a follow-on funding round led by industrial conglomerate The Sanmar Group.

Aham Housing Finance will use the funds to strengthen its lending capacity and accelerate expansion across underserved housing markets. The company will also use the funds to deepen its presence in existing geographies, enter select new markets, and continue investing in technology, underwriting and risk-management capabilities to better serve self-employed and first-time homebuyers.

The company said existing investors including Negen Capital, which was among its early institutional backers, will remain associated with it.

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Venkatesh Kannappan, Founder & Managing Director, Aham Housing Finance, said, “The affordable housing story is often discussed in terms of demand, but the real challenge lies in serving customers whose aspirations are formal, but whose income profiles are largely informal.

"That is where we have spent years building our expertise. Our focus has never been growth at any cost but creating a housing finance institution that can scale while remaining relevant to the realities of this customer segment.”

Aham Housing Finance said that, over the past few years, it has demonstrated strong growth across key operating metrics while maintaining a prudent risk management framework. The company remains focused on driving financial inclusion through responsible lending and creating long-term value for customers, employees, and shareholders, it noted.

The company focuses on loans with small ticket size with technology performing the majority of the underwriting tasks.

On the investment into Aham Housing Finance, Vijay Sankar, Chairman, The Sanmar Group, “The company has built a strong platform for affordable home financing, supported by an able team of expert risk managers and a firm foundation in transparency and professionalism.”

The Sanmar Group is a diversified industrial conglomerate with interests across chemicals, speciality chemicals, shipping, engineering, and foundry business, spanning over six decades. It has a presence in India, Egypt, Singapore, Mexico and the United States of America.

The story was updated.