Two US-based companies, Creation Investments and Norwest Venture Partners, recently co-led a $ 200 million Series C financing round for Vastu Housing Finance of India. Each investor pledged $ 75 million to Vastu, while IIFR Finance of India invested the remaining $ 50 million. Vastu plans to use the funding to rely on its Pulse platform, a “proprietary technological platform [that] helps clients estimate and demonstrate their income without papers to access credit.
Founded in 2015, Vastu operates 86 branches in 13 Indian states. Since its inception, the company has served 35,000 customers, of which 22,000 earn less than $ 600 per month. In March 2021, the company reported total assets of INR 27.7 billion (USD 372 million), total loans of INR 21.5 billion (USD 289 million) and total equity of INR 9.9 billion (133 million USD).
The IIFL offers in-person and online retail services such as wealth management, investment services, small business loans, home loans, gold loans and, through Samasta Microfinance, microloans.
Founded in 1961, Norwest invested $ 9.5 billion in 160 companies in India, Israel and the United States in 2020. The company typically invests a total of $ 10 to 15 million in a start-up, in installments as small as $ 1 million. Its maximum exposure to a single company is around $ 30 million.
Created in 2007, Creation manages funds and direct investments “for individuals, family offices and institutional investors … [to] provide access to capital to unbanked and underbanked people to start a small business activity. In addition to the United States, the company has offices in India and Mexico. Creation’s portfolio of investments includes 19 owned companies. In June 2021, these companies “served more than 28 million entrepreneurs with more than $ 15.7 billion in outstanding loans to micro and small businesses, $ 4.1 billion in micro-savings, $ 5.8 million. microinsurance policies ”and a one-year total of $ 3.7 billion in mobile services. payments processed.
By Arin Atluri, Research Associate
Additional sources and resources
PR Newswire press release
Vastu home page
Creation Investments home page
Northwest Home Page
IIFR Home Page
Vastu 2021 financial results
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