Empowering Dreams: Shubham Housing Development Finance Company Raises INR 122 Crore in Series C Funding

In a significant boost to the mission of providing formal housing credit solutions for individuals with informal incomes, Shubham Housing Development Finance Company has successfully secured Series C funding of INR 122 crore. The funding round, led by funds managed by Motilal Oswal Private Equity, also witnessed participation from existing investors, including Helion Advisors, Elevar Equity, Accion Frontier, and Saama Capital. The Gurgaon-based company, founded in 2010 by seasoned banking professionals Sanjay Chaturvedi and Ajay Oak, is dedicated to expanding its housing loan portfolio to reach a wider audience.

Shubham Housing Development Finance Company has positioned itself as a key player in offering formal housing credit to those with informal incomes. Over the last three years, the company has significantly grown, serving more than 4,500 families and boasting an asset book of approximately INR 235 crore. The Series C funding, a testament to Shubham’s success, will be instrumental in further expanding its reach and impact in the housing finance sector.

Sanjay Chaturvedi and Ajay Oak, the co-founders of Shubham, are seasoned professionals with a vision to identify and address the challenges faced by individuals with informal incomes in accessing housing finance. The founders’ commitment to understanding the unique needs of their customers has been pivotal in the company’s growth. Shubham engages extensively with customers, delving into their backgrounds, professions, earnings, spending patterns, and savings, ensuring a tailored and customer-centric approach.

With the infusion of fresh capital, Shubham aims to grow its asset book significantly and expand its distribution reach to 150 cities. The company has been successful in building strong partnerships with early investors, enabling it to focus on refining its business model and achieving its capital goals. Shubham’s credit rating of BBB by ICRA has further enhanced its ability to attract investments. Helion Advisors and Elevar Equity, both long-time supporters of Shubham, have been integral to the company’s journey. Rahul Chandra, Managing Director at Helion Advisors, expressed confidence in Shubham’s growth trajectory, citing the startup’s sharp focus, execution model, and unique intelligence in lending. The Series C funding reflects the resonance of Shubham’s vision with Helion’s commitment to backing strong teams driving long-lasting companies.

Motilal Oswal Private Equity, a subsidiary of Motilal Oswal Financial Services Ltd., played a pivotal role in leading the Series C funding. Raamdeo Agrawal, Co-Founder of Motilal Oswal Financial Services and Chairman of Motilal Private Equity, expressed high regard for Shubham’s achievements in the last three years. The strategic partnership with Shubham aligns with Motilal Oswal Private Equity’s focus on providing growth capital to mid-market companies. Shubham provides home loans and home improvement loans ranging from INR 1 lakh to INR 15 lakh. Currently operational in 12 states across India, including Maharashtra, Gujarat, Uttar Pradesh, and Bihar, Shubham has positioned itself as a trusted partner for those seeking housing finance with informal incomes.

The latest funding round positions Shubham Housing Development Finance Company on the cusp of a transformative phase. With a commitment to financial inclusion, customer-centricity, and strategic expansion, Shubham is poised to emerge as one of the largest and highly respected housing finance companies focused on the informal sector of the Indian economy. The founders, investors, and partners collectively envision a future where Shubham continues to empower dreams and pave the way for accessible and formal housing credit solutions for all.