Aditya Parekh’s Faering Capital picks up stake in Vastu Housing Finance

• Faering Capital looks to participate in the mortgage lender’s journey ahead.
• Vastu Housing is focused on the affordable housing market in India and has also started an NBFC to service new to credit customers.
• Secondary transaction carried out by Multiples Alternate Asset Management.

Vastu Housing Finance has closed a fund raise from Faering Capital, founded by Aditya Parekh and Sameer Shroff. The transaction is a secondary sale by funds managed by Multiples Alternate Asset Management and other shareholders of the company. The value of the transaction is $30 mn.

Aditya Parekh, Co-founder & Managing Director of Faering Capital said, “We are excited to partner with Sandeep and team and other shareholders in the Vastu journey. Housing finance and specifically affordable housing are multidecadal opportunities in India. Having tracked Vastu’s progress over the last few years, we are confident that the company is well on its way to build a highly profitable, large and respected institutional franchise focused on affordable housing finance.”

Private equity investors are keenly looking at India’s fintechs and non-banks that look to build businesses that serve the underserved population in India. According to deal data analysed by Grant Thornton, a total of 30 private equity deals were executed in the sector, cumulatively valued at $566 million in the September quarter of 2023.

Among these transactions, fintech claimed the spotlight with a 30% share in terms of deal volumes, even though sequentially value and volume showed a dip. However, banks and non-banks ruled the charts with respect to values, contributing a 77% share in overall investments.

Vastu is a digitally enabled retail affordable housing finance company with a pan-India presence. Vastu currently has an AUM of $900 million and serves 15 states across India in 200+ markets.

It aims to become a mortgage-led consumer lender serving the credit needs of emerging and aspiring India, Vastu has also set up a non-banking finance company (NBFC), Vastu Finserve in 2019, venturing into vehicle and MSME finance. Creating social impact lies at the core of Vastu, which focuses on lending to the low-middle income, mainly self-employed segment, and backing women borrowers.

Vastu has more than 40 lending relationships across leading public and private sector banks and leading financial institutions.

Sandeep Menon, Founder, MD & CEO, Vastu said,"We are happy to have Faering Capital join us as a valued partner. Aditya, Sameer and team have great domain knowledge in our industry and have been long-term supporters of Vastu. We look forward to having them as long-term shareholders.”