TA Associates Leads USD 400 Million Investment in Vastu Housing Finance Co.

TA Associates, a prominent private equity firm, announced on Thursday its leadership in acquiring a significant minority stake in Vastu Housing Finance Corp, a pan-India diversified lending institution. The acquisition involved existing investors, including the International Finance Corporation (IFC). While financial details were not disclosed, sources familiar with the transaction indicated that the stake was purchased for approximately INR 3,340 crore (USD 400 million), valuing Vastu at INR 10,000 crore. Additionally, Vastu received around USD 75 million in primary capital infusion.

Founding and Investor Background:

Founded in 2015 by Sandeep Menon and Sujay Patil, Vastu has been supported by Multiples Alternate Asset Management since its inception. Other notable investors include Norwest Venture Partners, Creation Investments, 360 ONE Asset Management, and Faering Capital. Vastu's loan book reached about INR 10,000 crore as of the end of FY24, and the company operates more than 230 branch locations across 13 states.

Strategic Growth and Vision:

Sandeep Menon, CEO of Vastu, expressed confidence in the partnership with TA Associates, stating that Vastu has made significant progress towards its vision of becoming a large, respected institutional retail lending franchise. He believes that the association with TA Associates will further accelerate Vastu's growth journey. Dhiraj Poddar, Managing Director at TA Associates, highlighted Vastu's strong position in the secured affordable housing segment and its impressive growth trajectory in small business loans and vehicle finance. He emphasized the long-term partnership with Vastu in its future endeavors.

Market Position and Future Prospects:

With this investment, Vastu Housing Finance is poised to strengthen its market position and expand its reach within the secured affordable housing, small business loans, and vehicle finance segments. The infusion of capital and strategic support from TA Associates and other investors will enable Vastu to enhance its services and achieve its growth objectives.