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Truhome Finance, formerly Shriram Housing Finance, is set to receive an additional INR 500 crore from its largest shareholder, Warburg Pincus, taking the total investment beyond INR 2,000 crore. The company plans to grow its loan portfolio aggressively, aiming for over INR 23,000 crore in assets under management (AUM) this fiscal year, with a target of INR 25,000 crore by June 2026. The lender is focusing on the self-employed segment, upgrading technology, expanding its branch network, and increasing its workforce, while keeping an IPO under consideration.
Truhome Finance, an affordable housing lender, is scheduled to receive an additional INR 500 crore from Warburg Pincus later this month. This follows earlier investments of INR 1,200 crore in fresh funding and INR 400 crore through compulsorily convertible debentures, bringing the total infusion from the private equity firm to over INR 2,000 crore. Advertisement
Ravi Subramanian, Managing Director and CEO, indicated that Truhome is focused on growing its loan portfolio without compromising asset quality. The company's one-day past due loans remain under 5%, and less than 1% of its current INR 20,000 crore AUM is overdue by 90 days or more. The lender aims to end the fiscal year with over INR 23,000 crore AUM and expects to reach INR 25,000 crore by June 2026, targeting an annual portfolio growth of more than 30% over the next three years.
The company has embarked on a INR 100 crore investment in technology, partnering with Salesforce to overhaul processes, which will allow the sales team to dedicate more time to business growth. Truhome also plans to expand its branch network to 250 by the end of this fiscal year, up from nearly 200, with an additional 75 branches planned for the next fiscal. Its workforce is projected to grow to 6,500 by the end of FY27 from 5,000 currently.
Addressing competition from banks with lower-cost funding, Subramanian noted that 80% of Truhome's AUM comes from self-employed borrowers, a segment that many banks prefer to avoid. The company evaluates multiple inputs to assess borrower creditworthiness, differentiating itself from lenders focused mainly on salaried customers.
While Truhome possesses the scale and financial strength for an initial public offering, Subramanian emphasized that the decision to list will ultimately rest with the promoters.
Source PTI
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