Wonder Home Finance raises Rs 500 crore from Growtheum Capital Partners

Investment

• Wonder Home Finance raised Rs 500 crore from Growtheum Capital Partners.
• Funds will expand branches, loan book, systems, and strengthen capital base.
• Wonder Home Finance operates 136 branches, focusing on affordable home loans.

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Affordable housing finance company Wonder Home Finance has raised Rs 500 crore from Singapore-based private equity firm Growtheum Capital Partners as part of a strategic partnership, the company said in a release on January 20.

The funds will be deployed towards expanding the branch network, supporting loan book growth, in systems, analytics and governance and towards strengthening capital base.

“We are delighted to welcome Growtheum Capital Partners as our strategic partner. GCP’s deep understanding of the financial services sector and strong alignment with our long-term vision will enable Wonder Home Finance to accelerate its growth plans and deepen geographic presence,” Ashok Patni, chairman of the RK Group, the parent entity, said.

Wonder Home Finance reported around 70 percent compounded annual growth over the last five years, with assets under management crossing Rs 3,000 crore. The company said it maintains a low gross non-performing asset ratio compared with peers in the affordable housing finance segment.

The investment will support the company’s next phase of growth while continuing to focus on asset quality and governance, Wonder Home Finance CEO and whole-time director Sanjay Rajawat said.

Affordable housing finance remains a structurally attractive segment in India, supported by favourable demographics and sustained demand, Growtheum Capital Partners managing director Saurabh Mehta said .

The investment reflects the firm’s strategy of backing high-quality, scalable businesses in the retail lending space, Growtheum Capital Partners managing partner Amit Kunal said.

Founded in 2017, Jaipur-headquartered Wonder Home Finance operates 136 branches in 12 states. It focuses on providing affordable home loans to borrowers with informal and semi-formal income profiles in urban and semi-urban markets. It is promoted by the RK Group of the Patni family, which also owns RK Marble and Wonder Cement.