Star Housing Finance Limited (Star HFL), a BSE-listed rural-focused retail home finance company, has raised Rs 60 crore to fuel its growth and expansion plans.
Star HFL raised the capital from a diverse set of investors, including High-Net-Worth Individuals (HNIs), institutional investors, and a prominent family house through an issue of warrants.
The strategic investment is subject to shareholder approval.
The company plans to use the capital to double its growth trajectory, bolster its brand presence, and attract top-tier talent to strengthen its leadership team, diversify its loan portfolio, invest in cutting-edge technology solutions, and intensify its market presence across critical regions.
“This funding will be pivotal in accelerating our growth plans, enabling us to reach new milestones and serve our customers better. We shall work towards building a solid base to enhance leverage to achieve an asset size of Rs 500 crore (Systemically Important Home Finance Company) as the first milestone and beyond,” said Kalpesh Dave, CEO, of Star HFL.
This infusion of capital is expected to have a multiplier effect on the company’s overall performance, unlocking previously untapped markets and expanding its customer base.
The company’s assets under management (AUM) as of June 30, 2023, increased 134% year-on-year to Rs 271.62 crore. The company disbursed Rs 34.67 crore during the quarter, registering a year-on-year growth of 26%.
Star HFL provides long-term housing finance assistance to EWS/LIG families towards the purchase/construction of low-cost housing units (affordable housing) in its operational geographies. Star HFL has presence across Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, NCR, and Tamil Nadu.
