Morgan Stanley puts Rs 164 crore in Ummeed HFC
Mumbai Morgan Stanley has acquired a shareholding in the R-164 million series round of financing of the company. Housing is backed by Swiss investor LGT, which acquired the Aspada fund, focused on India, from the Soros Economic Development Fund.
The latest funding round has been led by a fund managed by global investor Morgan Stanley Private Equity Asia, which acquired a minority stake in the company. Investment bank acted as the financial adviser to the company on the transaction. Existing investor also participated in the round. This equity round comes on the back of the $ 10-million equity raised in September 2018.
Ummeed Housing was established in 2016 and focuses on the informal and low-income segment, predominantly in Tier 2 and -3 cities. The company is a lender of the new era that has developed a fully digitized loan approval and disbursement process, which allows a quick response from customer requests.
In addition to home loans, it offers secured business loans for the MSME sector. “This fundraiser gives us clear visibility on the capital front before the next financial year. We will use this revenue to further expand into new geographies and continue to strengthen our technology platform, with a focus on building cutting-edge subscription practices, ”said Ashutosh Sharma, founder and MD, Ummeed Housing Finance. He added that the company aims to double its assets to Rs 1,000 million rupees in 12-18 months.
“The housing finance sector in India has experienced a liquidity crisis during most of this financial year, with stress in a couple of large housing finance companies. The fundraising of a credible private equity investor in the current environment means the trust that the fund has demonstrated in the company's growth history and solid business model. he added.