Varashakti Housing Finance raises series A funding from Incofin India Progress Fund

Chennai, Jul 25 (PTI) Varashakti Housing Finance, engaged in providing rural housing finance, has received Rs 35 crore series A Funding from Incofin India Progress Fund, to fuel its expansion plans, a top official said on Tuesday.

Varashakti Housing Finance focuses on the rural housing finance market, offering loans for asset creation. It has served over 4,200 people till date.

As of June 2023, Chennai-based Varashakti Housing Finance offers home loans, home improvement loans, loans against property, and reported assets worth Rs 119 crore, the company said.

VHF aims to reach Rs 1,750 crore by catering to 30,000 borrowers in the next 5-7 years, the company said in a statement.

"We are excited to join forces with Incofin. This funding allows us to expand our business, scale up the organisation and further impact the lives of the rural underserved segment.." Varashakti Housing Finance co-founder and director Sahaana Sankar said.

"We will benefit immensely from Incofin's global experience and value creation and look forward to including them in our journey," Sankar said.

The Series A funding is contributed from Incofin India Progress Fund, a private equity fund to support promising entrepreneurs with growth equity capital.

"With this investment, Incofin reinforces its mission to invest with a gender lens and to support climate resilient solutions. We see a large opportunity in the rural Indian affordable housing finance industry and believe that VHF's experienced team coupled with a strong technology platform will realise success while achieving deep impact goals," Incofin Asia Equity, partner and regional director, Aditya Bhandari said. PTI VIJ ROH