A consortium of private equity firms—Gaja Capital, Lightspeed India Partners, and Premji Invest—has launched People’s Home Finance, a new platform aimed at providing affordable housing finance to India’s self-employed segment, traditionally underserved by formal lenders.
Funding and Strategy
The platform has raised $170 million (around ₹1,400 crore) in its first equity round and will follow a “buy-and-build” strategy, acquiring existing housing finance companies to scale operations rapidly. The firm is leveraging AI-led underwriting and data analytics to assess non-salaried borrowers who often lack traditional income documentation.
“India’s total home loan assets under management (AUM) are around ₹40 lakh crore, yet self-employed borrowers account for less than 3% of this market,” said Anil Kothuri, CEO of People’s Home Finance. “Our AI-driven approach helps assess true earning potential quickly while maintaining credit discipline.”
Acquisitions and Expansion Plans
People’s Home Finance has acquired Capital India Housing Finance Ltd and entered into an agreement to acquire Centrum Housing Finance Ltd. Once completed, the platform will operate over 130 branches nationwide, employ more than 1,000 people, and manage a combined loan book of ₹2,000 crore.
The company aims to grow its AUM to ₹12,000 crore within five years through a mix of acquisitions and organic expansion, providing affordable homeownership solutions to India’s informal workforce.
Backers’ Perspective
- Premji Invest: Emphasizes combining technology with financial prudence. “With the right capital structure and AI-led underwriting, we can lend more efficiently while offering better rates,” said Saravanan Nattanmai, Partner.
- Gaja Capital: Focused on backing experienced managers. “Many leaders at People’s Home Finance come from HDFC and bring decades of institutional experience,” said Gopal Jain, Managing Partner.
- Lightspeed India Partners: Advocates an acquisition-led model. “We begin with a ₹2,000-crore loan book, a ready branch network, and a full CXO team, enabling scale from day one,” said Anuvrat Jain, Partner.
Leadership and Vision
The platform’s leadership team includes senior professionals from HDFC, Citi, and L&T Finance, ensuring strong domain expertise. With patient, long-term private equity capital and AI-driven processes, People’s Home Finance aims to modernize India’s affordable housing finance sector, historically hindered by slow processes and limited reach.
Industry observers note that if executed successfully, People’s Home Finance could become the “HDFC of affordable housing for a new generation.”
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