With this, the private equity giant would have invested more over Rs 2,000 crore in the company, which was earlier known as Shriram Housing Finance.
Affordable Housing Funding Boost
According to a senior official, Truhome Finance, which focuses on the affordable housing sector, would get an additional Rs 500 crore in funding later this month from Warburg Pincus, its biggest shareholder.
With this, the private equity giant would have invested more over Rs 2,000 crore in the company, which was earlier known as Shriram Housing Finance.
“Warburg previously invested Rs 400 crore in mandatory convertible debentures and Rs 1,200 crore in new investment. The lender’s managing director and CEO, Ravi Subramanian, had told PTI that they will now spend an additional Rs 500 crore by the end of October.
IPO Ready as AUM Targets Soar
Aside from this, he said, the “size and numbers are in place” for an IPO, but the promoters would make the ultimate decision on listing. He said that the lender’s one-day past due rates are now around 5% and stated that it is concentrating on rapidly expanding its book without sacrificing asset quality. He listed the company’s development goals and said that less than 1% of the loans in its Rs 20,000 crore assets under management (AUM) are past due by 90 days or more.
According to him, the company wants to end the fiscal year with more than Rs 23,000 crore in AUM and raise it to Rs 25,000 crore by June 2026. Subramanian emphasized that there is no lack of funds and said that Truhome wants to increase its book by more than 30% annually over the next three years.
Truhome Scales Tech, Branches
Following its takeover by the PE giant, the non-bank lender has invested Rs 100 crore in technology, hiring Salesforce, a top customer relationship management (CRM) provider, to restructure several procedures.
The new digital platform, according to Subramanian, will provide the sales staff more time to concentrate on expanding the company. According to the CEO, the home financing firm intends to conclude FY26 with a branch network of 250, up from around 200 now, and add 75 additional branches the following fiscal year. The company also said that its current workforce of 5,000 would increase to 6,500 by FY27.
Regarding competition, Subramanian said that 80 percent of AUM comes from the self-employed category, to whom banks are unwilling to lend, particularly given that banks with access to cheaper capital are also focusing on the affordable housing market. According to him, banks feel more at ease with the salaried sector, but Truhome uses a variety of factors to determine a borrower’s creditworthiness before issuing a check.