Bengaluru (Karnataka) [India], October 30: Vridhi Home Finance, a tech-enabled housing finance company, has raised ₹310 Crores (approximately $36.9 million) in Series B funding led by Norwest Venture Partners. The round also saw participation from existing investors, Elevation Capital, and the company’s founders.
Vridhi’s vision is to democratize housing finance in India. The company is investing in building a strong institution with high customer centricity, the right risk management practices and a strong distribution network. Since its inception in 2022, the company has expanded to 5 states with 51 branches across Karnataka, Andhra Pradesh, Rajasthan, Madhya Pradesh and Telangana and AUM of ₹200+ Crores.
The fresh capital will accelerate Vridhi’s expansion in existing markets while strengthening its technology infrastructure. The company has already completed phase 1 of its new digital onboarding system, enabling seamless customer journeys from loan application through disbursement and servicing.
Vridhi’s unique approach focuses on serving smaller towns with populations between 3,000 and 500,000, offering home loans ranging from ₹3 lakhs – ₹45 lakhs. This strategic focus on underserved markets, combined with robust underwriting practices and a growing physical network, positions Vridhi to address India’s significant housing finance gap.
Sunku Ram Naresh, Founder, MD & CEO of Vridhi Home Finance, said, “Our mission extends beyond just providing loans – we want to become the trusted financier of choice for underserved self-employed & informal income customers, helping them achieve their dream of home ownership. By establishing an omnichannel presence and ensuring exceptional service delivery through our phygital model, we are making home ownership accessible to traditionally underserved segments. The strong backing from Norwest and continued support from Elevation Capital validates our approach of combining deep market understanding with technology-led innovation.”
Nikhil Kookada, Principal at Norwest Venture Partners, said, “Norwest is delighted to partner with Ram, Sandeep, Sunil and the Vridhi team as they build a differentiated, tech-enabled affordable housing finance institution for semi-urban and rural India, helping Indian families achieve their dream of first home ownership. Vridhi’s founding team has played a pivotal role in laying the foundations of the Affordable Housing Finance industry in India and built two highly successful zero-to-one journeys in the last 2 decades. Norwest has a rich history of partnering with visionary entrepreneurs, possessing deep domain experience, and we are thrilled to support Vridhi as they drive financial inclusion for more Indians.”
Mridul Arora, Partner, Elevation Capital, said, “From the outset, we have believed in the vision that Vridhi Home Finance embodies — Bharat, a place where everyone, regardless of their background, has the opportunity to own a home. Affordable housing finance is a massive opportunity that has so far been underserved by banks and larger financial institutions. Vridhi is well poised to play an important role in our country’s housing revolution with its differentiated capabilities fueled by the founder’s deep-rooted passion and experience in this space. This latest funding round is a testament to our shared conviction in this space and the team’s ability to drive this transformation.”
About Vridhi Home Finance:
Vridhi Finserv Home Finance Limited is a “Tech-enabled Brick and Mortar” housing finance company and was incorporated as a public limited company in 2022 headquartered in Bengaluru, Karnataka. Vridhi currently operates in Karnataka, Andhra Pradesh, Rajasthan, Madhya Pradesh and Telangana, with a network of fifty-one branches spread across these regions.
Vridhi has been founded by seasoned promoters and a founding team in the Banking and Financial services domain with 75+ years of combined mortgage experience.
About Norwest Venture Partners:
Norwest is a multi-stage investment firm managing more than $15.5 billion in capital with a unique perspective on what it takes to build large businesses through varied economic cycles. The firm has invested in over 700 companies across sectors during its history of 60+ years. With offices in Palo Alto, San Francisco, India, and Israel, we offer a global footprint, a qualified team, and a rare background that enables us to offer our portfolio companies high-level, long-term collaboration. In India, Norwest has a successful history in partnering with innovative companies across Financials, Technology & Internet, Healthcare and Consumer sectors. Some of the firm’s most prominent investments in India include Kotak Mahindra Bank, IndusInd Bank, RBL Bank, Five Star, NSE, Swiggy, Of Business, Mintifi, SK Finance, Vastu Housing, Subway, Amagi, and Infinx.
About Elevation Capital:
Elevation Capital is a leading venture capital firm that provides seed and early-stage capital for emerging companies in India. Having invested in India since 2002, Elevation has deployed over $2.6 Bn of capital in 190+ companies. The firm announced its eighth pool of capital of $670 million in April 2022. Co-led by Managing Partners Ravi Adusumalli and Mukul Arora, along with Partners Mridul Arora and Mayank Khanduja, the firm has invested across Consumer Internet, SaaS, Fintech, Consumer Brands, Edtech, Healthtech and Deeptech. Elevation Capital has offices in Bengaluru and Gurgaon.
Website: www.vridhihomefinance.com
LinkedIn: https://www.linkedin.com/company/vridhi-finserv-home-finance-limited/
If you have any objection to this press release content, kindly contact pr.error.rectification@gmail.com to notify us. We will respond and rectify the situation in the next 24 hours.
