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Shubham Housing Development Finance received $20 million from investors

No Comments Sub Category:Realty News Posted On: Sep 01, 2014

Housing finance provider Shubham Housing Development Finance Company has raised Rs. 122 crore ($20 million) in its recent round of funding from Motilal Oswal Private Equity (MOPE) and existing investors Helion Venture Partners, Elevar Equity Mauritius, ACCION Frontier Investment Group and Saama Capital.

MOPE invested around Rs. 62 crore while the rest came from the existing investors. The housing finance provider had raised Rs. 43 crore in 2012 from the venture funds mentioned above. Hence they have successfully raised funds twice from the investor group.

Sanjay Chaturvedi the CEO at Shubham Housing Development Finance explained that the company strives to use this capital efficiently by minimising capital expenditure. A large portion of these funds will go into providing loans and expanding reach.

As of July 2014, the firm’s loan book stood at Rs. 235 crore. They are looking at providing more loans to the consumers. With the fresh round of funding, Shubham’s net worth is around Rs. 172 crore. The investors together hold 75 % in the company while the rest is distributed amongst Ajay Oak, Sanjay Chaturvedi and ESOP (Employee Stock Ownership Plan) for employees.

The company’s finances are strong and the strategies are robust for the future. As of March this year, Shubham had 50 branches across India and 418 employees. The company provides loans at an interest rate ranging between 17 % and 22 % which is much higher than the nationalised banks; however cater to a variety of customers.

Source- Business Standard

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