Avendus Capital advises AVIOM India Housing Finance on its USD 30 million investment from Nuveen

7th April 2023 | Mumbai | Investment Banking

Affordable Housing Finance player, AVIOM India Housing Finance to receive USD 30 million in its Series D funding round through a mix of primary and secondary investment from Nuveen, a leading global investment manager with over USD 1.1 trillion of assets under management. The investment from Nuveen will be used to fuel further growth and enable AVIOM to deliver on its mission of financial inclusion.

Avendus Capital was the exclusive financial advisor to AVIOM for this transaction.

AVIOM is an affordable housing lender to under-served, low-income households. With assets under management of INR 10 billion+ (USD 120 Mn+), its business model combines lending with social impact, catering to the informal housing market. The company works towards bringing these families into the fold of formal financial services by providing home loans in the range of INR 100-500K (USD 1,200-6,000) for home improvement, renovation, and sanitation to people from low-income households across semi-urban and rural areas. The company has a network of 120 branches in 12 states. Over the next 6 months, AVIOM looks to increase its monthly disbursement to INR 1.5 billion (USD 18 Mn+) a month and will also add 50 more branches to its existing network.

Kajal Ilmi, MD & CEO, AVIOM India Housing Finance Pvt Ltd said, “We are delighted to partner with Nuveen. The fundraise will propel the company’s loan book and expand its operations into newer geographies to meaningfully support low-income households. With this, we propose to extend financial assistance to around 60,000+ families in the next FY by disbursing approximately INR 12 billion (USD 145 Mn+).”

Stephen Lee, Senior Director & Head of Asia, Nuveen Private Equity Impact Investing said, “Nuveen seeks out innovative companies with transformative business models that solve real-world problems. AVIOM and its leadership have disrupted micro-mortgage lending in India by catering to a hitherto underserved segment. We have been greatly impressed by the company’s history of strong growth, asset quality, profitability profile, and focus on gender inclusion. We look forward to partnering with Kajal and the AVIOM team on their next chapter of growth.”

Anshul Agarwal, Managing Director and Co-head, Consumer, Financial Institutions Group & Business Services Investment Banking, Avendus Capital said, “This transaction is a testament to AVIOM’s strong growth trajectory and its commitment to service bottom-of-the pyramid customers. AVIOM stands out as a disruptor in the micro-mortgage space and this partnership will allow it to pursue the large untapped potential therein. We continue to remain excited about the affordable mortgage segment, given the large TAM and strong resilience demonstrated in recent times and believe AVIOM is perfectly poised to leverage the sectoral tailwinds and embark on its next phase of growth.”

Since AVIOM’s very inception, the company has remained true to its mission of empowering women through financial independence and inclusion. Affordable mortgages enable women to build homes they could otherwise not afford and establish a credit history. The company has impacted 150,000+ lives by helping households access good quality housing and sanitation. It plans to touch 750,000+ lives by fiscal 2026. AVIOM’s innovative sourcing model, known as AVIOM Shakti, also creates quality employment opportunities for over 55,000 women—with plans to add 5,000 on a monthly basis. Shakti officers are the referral agents for AVIOM loans. This, in turn, makes AVIOM one of the largest employers of women in rural regions in India.

About Avendus

Avendus Group is a leading financial services firm with presence in the areas of Investment Banking, Institutional Equities, Wealth Management, Credit Solutions and Asset Management. Established in 1999 in Mumbai, India, Avendus is today present in 11 cities across India, US, UK and Singapore. Avendus partners with the Indian entrepreneur ecosystem to provide differentiated solutions that enable clients to meet their strategic aspirations.

Avendus Capital, the investment banking arm, is consistently ranked among the top investment banks in the country on the back of its in-depth domain understanding and a best-in-class track record of domestic and cross-border transactions. Avendus’ wide range of clients is testimony to its ability to serve its corporates throughout their life cycle – from growth stage funding to large-sized transactions, and M&A advisory.

Avendus Capital Inc located in New York is an Avendus Group entity offering M&A and Private Equity syndication services to clients in the US.

For more information, please visit www.avendus.com

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