Morgan Stanley and Norwest Capital-backed Ummeed Housing Finance has raised ₹630 crore in a Series F round from investors including A91 Partners LLP, Mirae Asset Venture Investments (India), Anicut Capital and existing investors Norwest Venture Partners.
The fundraising is in a combination of primary capital of ₹300 crore and an exit for Lightrock Global Fund, which had invested in 2018. Lightrock Global Fund exited at 3x return by raising ₹330 crore in lieu of its original equity in the home financier.
DC Advisory India was the exclusive financial advisor to Ummeed.
The funds will be used to expand in the central and southern parts of India, including Madhya Pradesh, Telangana and Andhra Pradesh.
Ummeed’s 60% portfolio consists of affordable housing loans and the remaining secured small-ticket business loans to self-employed individuals in the low and middle-income categories.
“Raising primary capital for the company was the main focus. One of our investors, who has been with us for six years, wanted an exit,” said Ashutosh Sharma, MD of Ummeed Housing. “Lightrock Global has been around now for six years and now decided to exit.”
Morgan Stanley and Norwest Partners are the two big stakeholders in the company. Morgan Stanley has close to a 20% stake, Norwest 23%, and CX Partner holds around 13%.
The company has a loan book of ₹1,800 crore and is looking to expand its asset base to ₹4,000 crore in the next 18-24 months. The fundraising is sufficient to fund growth in the next 18-24 months, said Sharma.
The lender expects growth from the construction of new houses under government initiatives like the Pradhan Mantri Awas Yojana (PMAY) and the Credit-Linked Subsidy Scheme (CLSS).
