Chennai, NFAPost: Chennai-based affordable housing finance company Aptus Value Housing Finance (Aptus) has raised Rs 880 crore of equity capital. The funding was led by existing investor-WestBridge, with new investors Steadview Capital and Sequoia Capital. Existing investor Malabar Investments also participated in the fund raising.
With the current round of funding, Aptus is now valued at Rs 5,080 crore.
Commenting about the equity raise, M Anandan, promoter of the company said, “We are happy to welcome Steadview and Sequoia, and are grateful to our existing investors for their continued support and confidence reposed in Aptus. With a set of marquee investors, we are well capitalised to build on the strong base and expect to grow our loan book at over 60% CAGR over 3 years.”
Aptus has in 10 years built a very strong franchise in affordable housing finance with a loan book of over Rs 2,650 crore, and growing at a rate of over 60% in the last five years. The company, which provides home loans, improvement loans and business loans to the underserved self-employed customers, has disbursed over Rs 3,500 crore worth of loans with significant presence in semi urban and rural areas.
Aptus has over 40,000 customers and it serves them through its 165 branches in four South Indian States. Since inception in 2010, Aptus operates with industry leading metrics on asset quality, profitability and return on assets. Aptus also operates a subsidiary (Aptus India Finance Private Limited), through which it provides business loans to its target segment.
The company expects to continue to maintain its growth, penetrate deeper into its home market in South, and plans foray into adjacent States in the years ahead. It targets to achieve a loan book of Rs 9,000 crore by the end of FY22.The company also aims to build a market leading financial services company in affordable housing.
Spark Capital acted as the exclusive financial advisor to Aptus for this transaction.