Chennai, September, 2016: Aptus Value Housing Finance India Ltd, an affordable housing financing firm focused on self-employed middle income customers, today announced that it has closed a Rs. 270 crore investment in equity led by Rs. 245 crores from a fund advised by WestBridge Capital Partners, LLC and Rs. 25 crores from India Financial Inclusion Fund (IFIF), a fund advised by Caspian Impact Investment Advisers. Aptus is a specialized housing finance player, based in Chennai that is an emerging market leader catering to the large under-served housing market of informal income customers (ticket sizes of Rs. 5-15 lakhs).
Aptus Value Housing Finance India Ltd focuses on extending housing finance facilities to informal middle income customers. Aptus follows a unique approach studying cash flow cycles and income profiles associated with each customer before the credit approval. Aptus aims to work on the philosophy of financial inclusion enabling credit access to self-employed customers on reasonable terms for acquiring affordable housing units. The company has been promoted by Mr. M. Anandan who has over 30 years of multi-functional leadership experience in financial services.
This round of investment will fund the expansion of the Aptus’ network and AUM over the next four years, with a projected portfolio of over Rs. 5,000 crores. Affordable housing has a large latent potential and is highly under served.
Aptus has developed a unique cash flow/standard of living assessment for each customer even in the absence of conventional income documents, by doing detailed assessment of their customers’ economic activity. Aptus follows industry specific templates for individual customer evaluation.
Speaking on the investment, Mr. M. Anandan, Founder and CEO, Aptus Value Housing said, “We are very excited to have WestBridge, one of the leading PE investors in India, strengthening the partnership further with Aptus and the management team. Aptus aims to build a highly respected and market leading financial services franchise focused on serving the financial needs of affordable housing, which is fast emerging as a large and essential financial inclusion mechanism.”
KP Balaraj, Managing Director, WestBridge Capital India Advisors Private Limited, an advisor to WestBridge Capital Partners, LLC added, “Financial inclusion is a very important policy agenda for PM Modi and the government and we believe it has the potential to transform India. WestBridge is fortunate to be investors with Aptus, and supports their mission of serving micro-entrepreneurs in the informal economy.”
Mona Kachhwaha, Investment Director, Caspian Impact Investment Advisers commented, “Aptus’ experienced and competent team has made mortgage finance to the self-employed accessible and affordable. These small business owners and their families are largely underserved by the formal financial system. As an impact investor, Caspian is delighted to continue its long association with Aptus”