Creation Investments, Norwest Venture Partners Co-Lead US$200 Million Financing Round for Indian Affordable Housing Firm Vastu - PRNewswire

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CHICAGO and MUMBAI, India, Oct. 28, 2021 /PRNewswire/ -- Vastu Housing Finance Corporation Ltd., a leading Indian affordable housing finance company, has raised US$200 million from institutional investors in the U.S. and India as it seeks to help millions of Indians fulfill their dreams of home ownership.

Chicago-based Creation Investments Capital Management LLC, a global alternative asset manager and leading impact manager in emerging markets, and Palo Alto, Calif.-based Norwest Venture Partners, a global venture and growth equity investment firm, are co-leading the Series C funding round with each investing US$75 million in Vastu. Mumbai-based IIFL Finance, one of India's largest financial services companies, is investing US$50 million.

Vastu's award-winning proprietary technology platform PULSE helps customers estimate and demonstrate their undocumented income to access credit solutions. As of July 2021, Vastu has provided financial assistance to more than 35,000 customers, most of whom don't have formal access to credit from financial institutions in India because they lack documented income.

"Our mission is to provide easier, faster and simpler access to own affordable homes for millions of Indians who have limited access to formal channels of credit," said Sandeep Menon, founder, managing director and CEO of Vastu. "We are pleased to receive this significant support from capital partners Creation, Norwest, IIFL and continued support from the majority investor, Multiples Private Equity."

"This is Creation's biggest investment to date and we are delighted to support Vastu, whose goal aligns with ours—to help those at the bottom of the economic pyramid secure sorely needed financial resources," said Tyler Day, a partner at Creation. "We feel that Vastu's capabilities, operations and systems are industry leading and we have great confidence that Vastu will continue to scale swiftly and expand operations while maintaining high underwriting standards."

"We are excited to partner with Vastu on this journey in building one of India's fastest growing, highly profitable, tech-enabled financial services platforms," said Niren Shah, managing director and head of Norwest Venture Partners India. "It is clear that Vastu's differentiation lies in its experienced and high-energy team and its investments in technology, data and analytics."

Multiples Private Equity, founded by Renuka Ramnath in 2009, was the first institutional investor in Vastu in 2015, and remains the majority owner today.

About Vastu

Vastu Housing Finance Corporation Ltd. is a leading Indian affordable housing finance company working to enable millions of Indians to own homes. With a unique focus on self-employed individuals and small-business owners, Vastu's business is built on data science and analytics. As of July 2021, Vastu has assisted more than 35,000 customers, many of whom are low income, in owning a home. For more information, visit the firm's website.

About Creation Investments

Creation Investments Capital Management, LLC is a global alternative asset manager and leading impact investor in emerging markets. Worldwide, Creation's investments directly help more than 28 million small businesses. The firm manages more than US$1.5 billion on behalf of institutional investors, family offices and high net worth individuals. Leveraging its deep industry experience, Creation partners with management teams to inject growth equity and facilitate buyout transactions in firms specializing in microfinance, small- and medium-enterprise credit, leasing, factoring, insurance, savings, payments, and mobile money. Together with its portfolio companies, and in alignment with the United Nations Sustainable Development Goals (SDGs), Creation aims to improve the lives of those at the bottom of the economic pyramid in emerging markets. For more information, visit www.creationinvestments.com.

About Norwest Venture Partners

Norwest Venture Partners is a leading venture and growth equity investment firm managing more than $9.5 billion in capital. Since its inception, Norwest has invested in more than 600 companies and currently partners with over 160 active companies in their venture and growth equity portfolio. The firm invests in early to late stage companies across a wide range of sectors with a focus on consumer, enterprise, and healthcare. Norwest has offices in Palo Alto and San Francisco, with subsidiaries in India and Israel. For more information, visit www.NVP.com.

SOURCE Creation Investments