Vridhi Home Finance, a tech-enabled housing finance company, has raised ₹310 crores (approximately $36.9 million) in Series B funding led by Norwest Venture Partners. The round also saw participation from existing investors, Elevation Capital, and the company’s founders.
The fresh capital will be used for expansion in existing markets while strengthening its technology infrastructure. The company has already completed phase 1 of its new digital onboarding system, enabling seamless customer journeys from loan application through disbursement and servicing.
Vridhi’s unique approach focuses on serving smaller towns with populations between 3,000 and 500,000, offering home loans ranging from ₹3 lakhs to ₹45 lakhs. This strategic focus on underserved markets, combined with robust underwriting practices and a growing physical network, positions Vridhi to address India’s significant housing finance gap.
Sunku Ram Naresh, Founder, MD & CEO of Vridhi Home Finance, said, “Our mission extends beyond just providing loans – we want to become the trusted financier of choice for underserved self-employed & informal income customers, helping them achieve their dream of home ownership. By establishing an omnichannel presence and ensuring exceptional service delivery through our phygital model, we are making home ownership accessible to traditionally underserved segments. The strong backing from Norwest and continued support from Elevation Capital validates our approach of combining deep market understanding with technology-led innovation.”
Nikhil Kookada, Principal at Norwest Venture Partners, said, “Norwest is delighted to partner with Ram, Sandeep, Sunil and the Vridhi team as they build a differentiated, tech-enabled affordable housing finance institution for semi-urban and rural India, helping Indian families achieve their dream of first home ownership. Vridhi’s founding team has played a pivotal role in laying the foundations of the Affordable Housing Finance industry in India and built two highly successful zero-to-one journeys in the last 2 decades. Norwest has a rich history of partnering with visionary entrepreneurs, possessing deep domain experience, and we are thrilled to support Vridhi as they drive financial inclusion for more Indians.”
Mridul Arora, Partner, Elevation Capital, said, “From the outset, we have believed in the vision that Vridhi Home Finance embodies — Bharat, a place where everyone, regardless of their background, has the opportunity to own a home. Affordable housing finance is a massive opportunity that has so far been underserved by banks and larger financial institutions. Vridhi is well poised to play an important role in our country’s housing revolution with its differentiated capabilities fueled by the founder’s deep-rooted passion and experience in this space. This latest funding round is a testament to our shared conviction in this space and the team’s ability to drive this transformation.”
Since its inception in 2022, Vridhi Home Finance has expanded to 5 states with 51 branches across Karnataka, Andhra Pradesh, Rajasthan, Madhya Pradesh and Telangana and AUM of ₹200+ crores.
