MUMBAI: Truhome Finance, focusing on affordable housing, is set to receive an additional ₹500 crore funding from its primary shareholder, Warburg Pincus, later this month, as confirmed by a senior official.
This new investment will increase Warburg Pincus’s total commitment to over ₹2,000 crore in the entity, previously known as Shriram Housing Finance.
“Warburg has previously invested ₹1,200 crore in new funding and ₹400 crore in compulsorily convertible debentures. They are now set to contribute ₹500 crore more by the end of October,” said Ravi Subramanian, managing director and CEO of the lender, in a statement to PTI.
He noted that the company has the prerequisites for an initial public offering, but the final decision on the listing will be made by the promoters.
Truhome aims to aggressively expand its portfolio while maintaining asset quality, with current one-day overdue levels at under 5%. Less than 1% of the loans from its ₹20,000 crore assets under management are delinquent for 90 days or more, as per the company’s growth goals.
The target for the fiscal year is to exceed ₹23,000 crore in AUM and reach ₹25,000 crore by June 2026. Subramanian emphasized that there are no funding shortages, aiming for over 30% annual growth in the next three years.
Following its acquisition by the private equity firm, the non-banking lender plans to invest ₹100 crore in technology enhancements, collaborating with Salesforce for process improvements.
Subramanian explained that the new technological framework will allow the sales team to dedicate more time to expanding the business.
The company intends to grow its branch network to 250 by FY26 from nearly 200 currently, planning to add 75 more branches in the subsequent fiscal year, with workforce expansion to 6,500 by the end of FY27, up from 5,000 today.
When discussing competition, especially from banks aiming at the affordable housing sector with lower-cost funding, Subramanian pointed out that 80% of their AUM is sourced from the self-employed category, which traditional banks are less inclined to support.
He stated that banks typically prefer lending to salaried individuals, while Truhome employs a broad set of criteria for evaluating borrower creditworthiness. PTI
