Warburg to infuse Rs 500 cr more in Truhome; CEO says biz scale in place for IPO

Ravi Subramanian, MD & CEO, Truhome Finance

Affordable housing segment focused Truhome Finance is set to receive another Rs 500 crore fund infusion from its largest shareholder Warburg Pincus later this month, a top official has said.

This will take the private equity major’s overall investment in the entity, which was formerly known as Shriram Housing Finance, to over Rs 2,000 crore.

"Warburg invested Rs 1,200 crore in fresh funding and Rs 400 crore in compulsorily convertible debentures earlier. Now, they will invest Rs 500 crore more by the end of October,” Ravi Subramanian, the lender’s managing director and chief executive, told PTI earlier.

He added that apart from this, the ”scale and numbers are in place” for an initial public offering, but the final call on listing will be taken by the promoters. He said the lender is focusing on aggressively growing its book without compromising on asset quality, and added that its one day past due levels are under 5 per cent right now. Less than 1 per cent of the loans in its Rs 20,000 crore assets under management are unpaid for 90 days or more, he said, listing out the growth ambitions.

It is aiming to close the fiscal year with over Rs 23,000 crore of AUM and take it up to Rs 25,000 crore by June 2026, he said. Stressing that there is no shortfall of funding, Subramanian said Truhome aims to grow its book by over 30 per cent per annum over the next three years.

After the acquisition of the business by the PE major, the non-bank lender has embarked on a Rs 100 crore spend on technology, under which it has engaged leading customer relationship management company Salesforce to overhaul a lot of processes.

Subramanian said the new tech platform will ensure that the sales team has more time at hand to focus on growing the business. The housing finance company plans to close FY26 with a branch network of 250 as against nearly 200 at present, and add 75 more branches next fiscal, the CEO said, adding that the employees will grow to 6,500 by end of FY27 as against 5,000 at present.

When asked about competition, especially now that banks having access to lower cost funding are also targeting the affordable housing segment, Subramanian claimed that 80 per cent of its AUM are from the self-employed segment, which the banks are not willing to lend to. He said banks are more comfortable with the salaried segment, while Truhome depends on a multiple of inputs to assess the credit worthiness of a borrower to write a cheque.