Two US-based firms, Creation Investments and Norwest Venture Partners, recently co-led a Series C financing round of USD 200 million for Vastu Housing Finance of India. Each investor committed USD 75 million to Vastu, with India’s IIFL Finance investing the remaining USD 50 million. Vastu plans to use the financing to build on its Pulse platform, a “proprietary technology platform [that] helps customers estimate and demonstrate their undocumented income to access credit.”
Founded in 2015, Vastu operates 86 branches in 13 Indian states. Since its inception, the firm has served 35,000 customers, 22,000 of whom earn under USD 600 per month. As of March 2021, the firm reported total assets of INR 27.7 billion (USD 372 million), total loans of INR 21.5 billion (USD 289 million) and total equity of INR 9.9 billion (USD 133 million).
IIFL offers in-person and online retail services such as wealth management, investment services, small-enterprise loans, housing loans, gold loans and – via Samasta Microfinance – microloans.
Founded in 1961, Norwest has USD 9.5 billion invested in 160 companies in India, Israel and the US as of 2020. The firm generally invests a total of USD 10 million to USD 15 million in an early-stage company, in tranches as small as USD 1 million. Its maximum exposure to a single company is approximately USD 30 million.
Founded in 2007, Creation manages funds and direct investments “for individual, family office and institutional investors… [to] provide access to capital to the unbanked and underbanked to engage in small-business activity.” In addition to the US, the firm has offices in India and Mexico. Creation’s equity investment portfolio includes 19 investees. As of June 2021, these companies “serve over 28 million entrepreneurs with over USD 15.7 billion in micro- and small business loans outstanding, USD 4.1 billion in microsavings, 5.8 million microinsurance policies” and a one-year total of USD 3.7 billion in mobile payments processed.
By Arin Atluri, Research Associate
Sources and Additional Resources
PR Newswire news release
https://www.prnewswire.com/news-releases/creation-investments-norwest-venture-partners-co-lead-us200-million-financing-round-for-indian-affordable-housing-firm-vastu-301411502.html
Vastu homepage
https://www.vastuhfc.com/
Creation Investments homepage
https://creationinvestments.com/
Norwest homepage
https://www.nvp.com/
IIFL homepage
https://www.indiainfoline.com/
Vastu 2021 financial results
https://www.vastuhfc.com/uploads/downloads/Audited-Financial-Results-FY-20-21.pdf
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: DPAM, Korys Buy Equity in Incofin Investment Management to Boost Impact, Including Via Climate, Gender Funds
- MICROCAPITAL BRIEF: Incofin Launches Water Access Acceleration Fund (W2AF) with $39m to Invest in Africa, Asia
- MICROCAPITAL BRIEF: SBFC Raises $18m from Amansa for On-lending to Small Businesses, Households in India
- MICROCAPITAL BRIEF: Incofin Places $4.3m in Equity in Varashakti Housing Finance via India Progress Fund
- MICROCAPITAL BRIEF: Rite Water of India Nets $8m in Equity from Incofin via Water Access Acceleration Fund
