Service
Private Equity
Sector
Consumer, FIG & Business Services
Date
January 2018
Deal Value
USD 48 million
Shubham Housing Development Finance Company Limited (“Shubham”), a leading affordable housing finance company, announced a fund raise from Premji Invest and existing investors Elevar Equity and Helion Venture Partners.
Avendus Capital was the exclusive financial advisor to Shubham and its shareholders.
As part of the transaction, Premji Invest will infuse capital in the business and acquire stake from two of the existing investors, Accion Africa Asian Investment Company and Saama Capital. The existing shareholders Elevar Equity and Helion Venture partners participated in the fund raising round with Premji Invest.
Located in Gurgaon, India, Shubham was founded in 2011 by Sanjay Chaturvedi and Ajay Oak with a vision of financial inclusion by providing housing finance to the unserved and underserved sections of the society. Today the company is one of the fastest growing companies in the affordable housing segment with assets under management exceeding INR 10Bn and a presence across 12 states via 90 branches. Along with a unique capability to underwrite housing loans to this segment of the society, Shubham has a strong technologically integrated platform and advanced portfolio monitoring analytical capabilities.
“The fact that we have been able to attract equity investment from a fund of the calibre of Premji Invest further to earlier investments by Elevar Equity, Helion Advisors, ACCION’s Frontier Investment Group, Saama Capital and Motilal Oswal is a tribute to the strength of Shubham’s business model and a source of great pride for Ajay & me. We can now leverage these funds to take Shubham to the next orbit. Knowing that by doing this we will contribute to the national mission of Housing for all by 2022 gives us immense satisfaction” said Sanjay Chaturvedi, CoFounder and CEO of Shubham Housing.
“We fully support the promoters in their endeavour to provide affordable housing solutions for the marginalized sections of society. This is also aligned with the governments stated objective of “Housing for All”. Shubham has scaled up to be one of the leading affordable housing players by building fully automated underwriting and risk management practices, through in-house sourcing mechanism which makes the company unique. Premji Invest will look to work with Shubham founders in building robust processes and systems to help scale the organisation to the next level” said Rahul Garg, Partner, Premji Invest. As part of this deal Rahul Garg will join the Shubham board.
Commenting on the transaction, Mr Ritesh Chandra, Executive Director and Head, Financial Services, Avendus Capital said, “Shubham is targeting an underserved target group through its affordable housing loans and is poised to grow rapidly with this capital infusion. We anticipate Shubham to be amongst the leading housing finance companies in the country soon.”
About Shubham Housing Development Finance Company
Shubham Housing Development Finance Company aims to provide affordable housing finance to families with informal incomes and those outside the purview of formal credit structures, to drive financial inclusion for a better future. The company believes that every person in India should be able to buy their own home, and that informal incomes should not be a barrier to providing the credit they need. Established in 2011, Shubham was one of the first lenders in India to incorporate an innovative customised credit program for each customer instead of the traditional document based underwriting. Shubham’s unique approach in credit decision making incorporates comprehensive set of sources for income verification outside the traditional paper based forms to assess the affordability
About Premji Invest
PremjiInvest was formed in 2006 to invest on behalf of Azim Premji, Chairman and Founder of Wipro, with assets under management of ~$3-4b across Public and Private markets.
About Avendus Capital Pvt. Ltd. (“Avendus Capital”)
The Avendus Group (Avendus) is a leading provider of financial services with an emphasis on customized solutions in the areas of Investment Banking, Wealth Management, Structured Credit Solutions and Alternative Assets Management. Avendus relies on its extensive experience, in-depth domain understanding and knowledge of the regulatory environment, to offer customized solutions that enable clients to meet their strategic aspirations. Avendus Capital has consistently been ranked among the leading financial advisors by the number of deals. It has a strong track record of cross-border transactions and has helped multiple clients benefit from opportunities across geographies. Avendus’s wide range of clients is testimony to its ability to serve its corporate clients throughout their life cycle – from growth stage funding to complex, large sized transactions later in the cycle.
Avendus Capital Inc. and Avendus Capital (UK) Pvt. Ltd. located in New York and London respectively are wholly owned subsidiaries offering M&A and Private Equity syndication services to clients in the respective regions.
For more information, please visit www.avendus.com
