MICROCAPITAL BRIEF: Creation, Norwest, IIFL Places $ 200 Million in Equity in Vastu Platform Offering Home Loans Through Alternative Credit Rating in India


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
https://www.prnewswire.com/news-releases/creation-investments-norwest-venture-partners-co-lead-us200-million-financing-round-for-indian-affensible-housing-firm-vastu-301411502. html

Vastu home page

Creation Investments home page

Northwest Home Page

IIFR Home Page

Vastu 2021 financial results

Did you know that MicroCapital publishes the MicroCapital Monitor journal every month? To learn more, visit https://www.microcapital.org/products-page/.

Similar articles:

  • MICROCAPITAL BRIEF: Creation Investments launches debt fund in India to focus on microfinance, SMEs, housing and education
  • MICROCAPITAL BRIEF: Creation Investments Leads $ 30 Million Debt Round for ReshaMandi, B2B Application for Silk Farms, Manufacturers and Retailers in India
  • MICROCAPITAL BRIEF: CredAvenue raises $ 90 million in funding round led by Sequoia for platform connecting lenders and borrowers in India
  • MICROCAPITAL BRIEF: Amazon launches digital insurance and gold investment in India
  • MICROCAPITAL BRIEF: Avla raises $ 20 million in funding round to be led by US-based creative investments to expand its B2B insurance offerings in Chile, Mexico and Peru

Source link


Comments are closed.