Helion invets in PremjiInvest portfolio housing financier Shubham Housing

Shubham Housing Development Finance Company has raised a funding of about Rs305 crore through a combination of a primary and secondary sale, led by marquee investor Premji Invest.

The series D round of funding has also saw participation from its existing investors Helion Venture Partners & Elevar Equity.

The round also saw exit of ACCION's Frontier Investment Group and Saama Capital.

''With this, Shubham is poised to grow its loan book from Rs1,000 crore to more than Rs6,000 crore in the next five years,'' Shubham Housing CEO Sanjay Chaturvedi said.

Shubham along with private equity investors had raised debt of more than Rs800 crore from a number of domestic and international players.

As part of this deal, Rahul Garg, Partner, Premji Invest will join the Shubham board.

Shubham was formed in 2011 with the goal of providing access to formal credit to this vast working class population, to help these urban lower-income families own a decent home. It has devised a unique process of an intensive budget analysis to recognise the real income and affordability of the householdto underwrite loans, irrespective of the source of income.

Growth has been rapid as seen by the fact that they have disbursed loans to more than 26,000 households primarily been driven by increased demand for affordable housing across Tier II and Tier III cities where it has a strong presence across 12 states.

''With an ever expanding presence, we plan to scale up through a combination of leveraging proprietary internal and external technologies and multiple partnerships across categories to ensure superior customer delivery and be amongst the top Housing Finance players in this space,'' said Shubham Housing Finance COO Ajay Oak.