AVIOM Housing Finance Corporation (AVIOM HFC), headquartered in Delhi, recently secured a Series D funding round worth $30 Mn. Global investment manager Nuveen invested the amount through primary and secondary investments. It will use the funds to expand its loan book and operations in new locations to support low-income households. Moreover, AVIOM completed this latest funding round 18 months after raising INR 59 Cr (about $8 Mn) in its Series C round of funding in October 2021. In addition to the current investment, it has raised roughly $54 Mn across various funding rounds.
AVIOM Housing Finance Corp.’s Expansion Plan
AVIOM Housing Finance Corp. has announced plans to assist more than 60,000 families in the upcoming financial year by disbursing around INR 1200 Cr. According to Kajal Ilmi, the company’s MD & CEO, the fresh equity investment will enable AVIOM HFC to grow six-fold by 2026. The startup intends to increase its monthly disbursement to INR 150 Cr in the next six months while adding 50 more branches to its network. Additionally, AVIOM serves as a housing lender for low-income households. Also, it carries out this work throughout the country, with a particular focus on informal housing.
Reports suggest that AVIOM Shakti, AVIOM Housing Finance’s sourcing model, provides employment opportunities for over 55,000 women. The referral agents for loans are known as Shakti officers. They have helped the corporation become one of the largest employers of women in rural India. The company offers loans for house construction, extension, and renovation ranging from INR 1 Lakh to INR 5 Lakh. AVIOM HFC also has a network of 120 branches located in 12 states across the country.
Lee is the senior director and head of Asia for Nuveen’s private equity impact investing team. He has praised AVIOM HFC and its leadership for disrupting micro-mortgage lending in India and serving an underserved segment. Therefore, Lee admired the company’s history of strong growth and asset quality. He also praised its profitability profile and emphasis on gender inclusion.
AVIOM HFC’s Lending Strategy
AVIOM Housing Finance Corp. is a lending company that targets women borrowers from semi-urban and rural areas who lack formal income documentation. The company emphasizes both lending and social impact. Thus, serving a specialized market of informal housing. The housing finance corp. provides loans for house construction, extension, and renovation, ranging from INR 1 Lakh to INR 5 Lakh. It has a customer base of approximately 50,000 accounts and a robust presence in Maharashtra, Uttar Pradesh, and Bihar.
AVIOM HFC has a clear focus on gender inclusion. It has provided women employment opportunities through its AVIOM Shakti sourcing model. By supporting women borrowers, the company has empowered them to become financially independent and improve their quality of life. The company’s mission is to make homeownership accessible to all, including low-income households in India.
The Future of AVIOM HFC
AVIOM HFC’s successful Series D funding round will enable the company to scale its operations and increase its customer base. The company plans to use the funds to expand its presence in new geographies, which will help it reach more low-income households in need of housing finance. The company’s significant growth in the coming years is poised with the expansion of its loan book and the addition of new branches. AVIOM HFC’s focus on gender inclusion and social impact has set it apart from other housing finance companies in India. Thus, making it an attractive option for investors looking to make a positive impact.
