The platform has raised $170 million (around ₹1,400 crore) in equity capital in its first round and will follow a “buy-and-build” strategy, acquiring existing housing finance companies to achieve scale from inception. The firm is integrating AI-led underwriting and data analytics to underwrite non-salaried borrowers who lack formal income documentation.
“India’s total home loan assets under management (AUM) are estimated at around ₹40 lakh crore, yet self-employed borrowers account for less than 3% of this market. These are people who run small businesses, transact primarily in cash, and often cannot provide traditional proof of income,” said Anil Kothuri, Chief Executive Officer of People’s Home Finance.
“Our AI-driven approach helps assess true earning potential quickly and consistently while maintaining credit discipline.”
To accelerate growth, People’s Home Finance has completed the acquisition of Capital India Housing Finance Ltd and entered into an agreement to acquire Centrum Housing Finance Ltd.
Upon completion of the second acquisition, the platform will operate over 130 branches across India, employ more than 1,000 people, and manage a combined loan book of about ₹2,000 crore.
According to Kothuri, the company aims to grow its AUM to ₹12,000 crore within five years through a mix of acquisitions and organic expansion.
“With the capital we’ve raised, we are well-positioned to build a sustainable platform that can bring affordable home ownership to India’s informal workforce,” he said.
For Premji Invest, which manages the private investments of Wipro founder Azim Premji, the investment reflects confidence in combining technology with traditional financial prudence.
“Starting small often forces lenders to take undue risks or pass inefficiencies to customers,” said Saravanan Nattanmai, Partner at Premji Invest.
“With the right capital structure and AI-led underwriting, we can lend more efficiently while offering customers better rates and lower credit costs.”
Gaja Capital, known for pioneering India’s first management buyout in RBL Bank in 2010, said the partnership aligns with its philosophy of backing experienced managers turning entrepreneurs.
“Many of the leaders at People’s Home Finance come from HDFC and bring decades of institutional experience,” said Gopal Jain, Managing Partner at Gaja Capital.
“India needs more management buyouts that empower proven leaders to build scalable financial institutions.”
Lightspeed India Partners, which has previously backed fintech and consumer platforms such as Razorpay, Zepto, is adopting an M&A-first model for this venture.
“We preferred an acquisition-led model to build from an established base rather than starting from zero,” said Anvarata Jain, Partner at Lightspeed India.
“We begin with a ₹2,000-crore loan book, a ready branch network, and a full CXO leadership team, enabling us to scale from day one.”
The platform’s leadership team includes senior banking professionals from HDFC, Citi, and L&T Finance, among others.
With patient, long-term private equity capital and a technology-driven approach, People’s Home Finance aims to modernise the affordable housing finance sector—historically characterised by slow processes and limited reach—for India’s vast informal economy.
Industry observers note that if the firm executes its plan effectively, People’s Home Finance could emerge as what its backers describe as the “HDFC of affordable housing for a new generation.”
