Varashakti Housing Finance (VHF), a Chennai-based rural housing finance provider, has raised ₹35 crore (US$4.3 million) from Belgium-based impact investment firm Incofin. The Series A funding of VHF was under Incofin India Progress Fund.
The Incofin India Progress Fund is a SEBI-registered Category II alternative investment fund (AIF) launched in 2021.
Founded by CV Sankar and Sahaana Sankar in 2017, VHF focuses on the rural affordable housing finance market. Its offerings include home loans, small ticket home loans, home improvement loans, small ticket business loans and loans against property.
Also read: Shriram Housing Finance mops up $50 m via maiden ECB
Sahaana Sankar, Co-founder and Director, VHF said the funding will allow the company to expand its business, scale up the organisation and further impact the lives of the rural underserved segment.
As of June 2023, the assets of the company stood at ₹119 crore with 28 branches. VHF said it aims to reach an AUM of ₹1,750 crore in the next five to seven years.