Vridhi Home Finance Raises Rs 310 Cr In Funding

Vridhi Home Finance, a tech-enabled housing finance company has raised Rs 310 crore (approximately $36.9 million) in Series B funding led by Norwest Venture Partners. The round also saw participation from existing investors Elevation Capital and the company's founders.

Vridhi’s vision is to democratise housing finance in India. The company is investing in building a strong institution with high customer centricity, right risk management practices and strong distribution network. Since its inception in 2022, the company has expanded to 5 States with 51 branches across Karnataka, Andhra Pradesh, Rajasthan, Madhya Pradesh and Telangana and AUM of Rs200 crore.

The fresh capital will accelerate Vridhi’s expansion in existing markets while strengthening its technology infrastructure. The company has already completed phase 1 of its new digital onboarding system, enabling seamless customer journeys from loan application through disbursement and servicing. Vridhi’s unique approach focuses on serving smaller towns with populations between 3,000 and 5,00,000, offering home loans ranging from Rs3 lakh to Rs45 lakh. This strategic focus on underserved markets, combined with robust underwriting practices and a growing physical network, positions Vridhi to address India’s significant housing finance gap.

Sunku Ram Naresh, The company Founder, MD & CEO, said, “Our mission extends beyond just providing loans – we want to become the trusted financier of choice for underserved self-employed & informal income customers, helping them achieve their dream of home ownership. By establishing an omnichannel presence and ensuring exceptional service delivery through our phygital model, we are making home ownership accessible to traditionally underserved segments. The strong backing from Norwest and continued support from Elevation Capital validates our approach of combining deep market understanding with technology-led innovation.”