Prosus invests $100 million in Vastu Housing Finance, acquires minority stake

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Multiples PE-backed housing finance company (HFC) Vastu Housing Financing Corporate Limited (Vastu) has raised $100 million from Dutch technology investor Prosus, the investor said in its half-yearly disclosure on December 2.

"In October 2024, the group acquired an 8.4 percent effective (7.8 percent fully diluted) interest for approximately $100 million in Vastu Housing Financing Corporate Limited. Vastu is a housing finance company in India. The group will account for this investment as an equity-accounted associate on account of its significant influence on the board of directors," the company said.

In September, Naspers Ventures B.V, the wholly owned subsidiary of Prosus, had received Competition Commission of India (CCI) nod to undertake the acquisition.

This comes few months after the housing finance firm closed an undisclosed growth investment from private equity firm TA Associates Management LP. As per reports, the deal size was likely be about $400 million, with Vastu valued upwards of $1.4 billion. Vastu had also received a loan of up to $50 million from United States International Development Finance Corporation (USDFC) in the form of external commercial borrowings, in September.

The firm was valued at about $1.2 billion in February, according to market research firm Tracxn.

Th Dutch tech investor on December 2 also said it has pumped in $80 million (around Rs 680 crore) and picked up more than 10 percent stake in Mintifi, a supply-chain financing startup in India.

Founded in 2015 by Sandeep Menon and Sujay Patil, Vastu is a pan-India diversified lending institution, backed by Multiples Alternate Asset Management and other investors like Norwest Venture Partners, Creation Investments, 360 ONE Asset Management, and Faering Capital.

The Vastu Group comprises two major operational entities – Vastu Housing Finance Corporation Limited (VHFCL) and its 100 percent subsidiary, Vastu Finserve India Private Limited (VFIPL).

VHFCL’s standalone AUM was Rs 7,420 crore as on March 31, 2024 (compared to Rs 5,293 crore as on March 31, 2023). It caters to the affordable housing segment with an average ticket size of Rs 12-15 lakh.

Meanwhile, VFIPL provides vehicle loans and loan against property with an average ticket size of Rs. 4-8 lakh. Its primary product offering is in the vehicle loan segment at present, mainly used vehicles covering commercial vehicles, personal vehicles and a small portion of three-wheelers.

The company’s standalone AUM was Rs 1,717 crore as on March 31, 2024, up from Rs 803 crore from last year period.

The Group’s overall AUM stood at Rs 9,137 crore from Rs. 6,097 crore as on March 31, 2023, managed via 206 branches spread across 14 states. The firm reported a 26.6 percent surge in consolidated profit after tax (PAT) at Rs 361 while the revenue grew at Rs 1,255 crore, a jump of 63 percent from FY23.