Acumen to invest $8 m in low-income housing
A New York-based not-for-profit venture fund, Acumen Fund plans to make its first investment in the low-income housing space in India.
Karuna Jain, a senior portfolio associate of Acumen Fund informed that the fund plans to invest up to $8 million (nearly Rs.50 crore) in India in 2014, of which around $2 million will be invested in the low-income housing space. The fund invested around $5 million in India in 2013. The fund has invested across sectors such as agriculture, education, energy and health.
Though most of the capital of the fund comes from its global corpus but now it is now looking to raise additional funds locally.
Jain points out that the fund is looking to serve the customer segment which is earning a Rs.20,000 per month salary.
Property consultant Jones Lang LaSalle India, estimates that the loan market for the Rs.3-10 lakh low-income housing segment is worth nearly Rs.11 trillion. Loan in that segment are assumed to be high risk and the usual disbursements are above Rs. 10 Lakhs.
Agencies, like Housing Development and Infrastructure Ltd, Tata Capital and microfinance companies like Micro Housing Finance Corp. Ltd, are providing such loans, informs head, strategic consulting (west), Jones Lang LaSalle India.
Acumen is looking at both urban and rural markets and even migrant poor.
Source: Livemint
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