Shubham Housing Development Finance Company Limited ("Shubham" or "the Company") announced an investment of INR 1000 Crores+ led by Multiples Private Equity ("Multiples") with participation from existing investors, Asian Development Bank (ADB) and British International Investment (BII). The deal comprises of a primary issuance of INR 400 Crore along with a secondary purchase from early investors. Multiples will hold a significant minority stake in the Company post the transaction.
Shubham is an affordable housing finance lender that provides home loans to lower-income families and emerging consumers across India. The funds raised will be used to drive growth across its product offering and expand its footprint. As part of the investment, Nithya Easwaran, Managing Director of Multiples, will join Shubham's board.
Headquartered in Gurugram, India, Shubham started its journey in 2011 and has financed 1,00,000+ households till date. Sanjay Chaturvedi and Rupa Basu, the Promoters of the Company, have a vision to bridge the significant gap in availability of formal credit to the unserved and underserved segments of the society. With assets under management exceeding INR 50 billion, Shubham operates across 12 states via 160+ branches and 3,300+ employees. Along with a strong distribution network and cycle-tested underwriting capabilities to deliver credit solutions to this segment, Shubham has also invested in building a strong technologically integrated platform with advanced portfolio monitoring and data analytical capabilities. Avendus acted as the exclusive financial advisor to Shubham and its shareholders on this transaction.
Speaking on the occasion, Sanjay Chaturvedi, ED and CEO of Shubham, said, "This is a significant milestone for the Company, and we are pleased to welcome aboard Multiples, an investor with an entrepreneurial DNA. As Shubham embarks on its next phase of growth, we will continue to deepen our footprint and help lakhs of households realize their dream of owning a house." Rupa Basu, ED of Shubham, added, "This capital raise reflects our long-term strengths at Shubham, and we believe this investment by Multiples is a stamp of confidence for the underlying business model built over the years."
Nithya Easwaran, Managing Director of Multiples, said, "Our investment in Shubham underscores our commitment to identify and back high-quality opportunities in India's vibrant financial services sector. Sanjay and Rupa have built the business with a strong focus on asset quality and deep expertise of micro-markets and customer segments. Leveraging on our experience in the space, we are excited to partner with them in Shubham's scale-up journey." |
