MICROCAPITAL BRIEF: WestBridge Capital Invests $16m to Acquire 20% Equity Stake in India’s Aptus Value Housing Finance

WestBridge Capital, an investment company with offices in India, Mauritius and the United States, recently invested a total of INR 98 crore (USD 16 million) to acquire 20 percent of the shares of Aptus Value Housing Finance, an India-based company that seeks to provide affordable housing finance, primarily for middle-income, self-employed customers [1]. The investment was made through the WestBridge Crossover Fund, which has invested USD 450 million in nearly 20 companies since its launch three years ago [2]. The proceeds will be used to expand the company’s loan portfolio. Other shareholders of Aptus include the India Financial Inclusion Fund and Granite Hill India, which together own a total of 30 percent of the company [1].

KP Balaraj, the Managing Director of WestBridge Capital India Advisors, said “Affordable housing finance is a very large market, and essential for broader financial inclusion. We believe Aptus with its very strong leadership and credit culture, will emerge as a market leader in this segment.” Earlier this month, the International Finance Corporation (IFC), the private-investment arm of the World Bank Group, also invested USD 30 million in Shapoorji Pallonji & Company Limited (SPCL), an Indian construction company, for the development of affordable housing projects [1].

About WestBridge Capital

WestBridge Capital is an India-focused investment company that was founded in 2011.The company has offices in India, Mauritius and the United States, and it manages approximately USD 1.2 billion in assets invested in public and private companies. Typical equity investments by WestBridge are in amounts ranging from USD 10 million to USD 80 million. Financial data for WestBridge are not publicly available.

About Aptus Value Housing Finance Limited

Aptus Value Housing Finance is a company which addresses the housing finance needs of THE self-employed and informally employed, primarily those with mid-range incomes who live in semi urban and rural markets. Founded in 2010, it has its corporate headquarters in Chennai, India, and 39 other branches, reaching 3,800 clients. As of March 2014, its loaned assets stood at INR 252 crore (USD 40 million).

By Julia Marín, Research Associate

Sources and Additional Resources:

[1] Vccircle, WestBridge invests $16M in housing finance company Aptus Value  

[2] The Economic Times, WestBridge Capital Partners bets Rs 98 crore on Aptus Value Housing Finance

MicroCapital, June 10, 2014, Elevar Equity, Omidyar Network, Saama Capital, WestBridge Capital Invest $27m in Equity in India’s Vistaar Finance for Lending to Micro-, Small, Medium-sized Enterprises (MSMEs)

MicroCapital, January 2, 2014, Sequoia Capital Sells 1.75% Stake in India’s SKS Microfinance to WestBridge Capital for $4.7m

MicroCapital Universe Profile: WestBridge Capital

MicroCapital Universe Profile: Aptus Value Housing Finance Limited

MicroCapital Universe Profile: International Finance Corporation (IFC) 

MicroCapital Universe Profile: Indian Financial Inclusion Fund (IFIF)

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