Incofin India Progress Fund invests $4.3 million in Varashakti Housing Finance

CHENNAI: Impact investment manager Incofin has invested $4.3 million (Rs 35 crore) in Varashakti Housing Finance (VHF).

The series A funding comes from Incofin India Progress Fund, which is a private equity fund (SEBI registered Category II AIF), launched in 2021, to support entrepreneurs with growth equity capital. Financial inclusion is one of the two main focus points for the impact fund.
Aditya Bhandari, partner & regional director, Asia Equity, Incofin, said, “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 realize success while achieving deep impact goals”.

Sahaana Sankar, co-founder and director of VHF, said, “This funding allows us to expand our business, scale up the organization and further impact the lives of the rural underserved segment and enhance overall borrower experience.”
As of June 2023, VHF offers home loans, home improvement loans, loans against property and small ticket business loans. It reported an AUM of Rs 119 crore with 28 branches. VHF aims at reaching an AUM of Rs 1,750 crore by catering to 30,000 borrowers in the next 5-7 years, the statement added.