Warburg Pincus-owned Truhome Finance will get an additional capital of Rs 500 crore from the private equity firm by the middle of this month, managing director and CEO Ravi Subramanian said. Truhome Finance was earlier known as Shriram Housing Finance.
At the time of acquisition in December 2024, the private equity firm had invested Rs 400 crore in the form of convertible debentures and Rs 1,200 crore as fresh capital.
Capital infusion fuels rapid AUM growth and expansion targets
Recently, the housing finance company crossed Rs 20,000 crore in assets under management, making it the third-largest affordable housing finance firm after Aadhar Housing Finance and Aavas Housing Finance.
“With an eye on Rs 25,000-crore AUM by the first quarter of the next year, our long-term vision is to emerge as one of India’s best affordable housing finance companies,” Subramanian said.
He expects the growth to come largely from the tier-II and III cites, which currently account for around 45% of the business. The company plans to add 70 more branches in these cities, taking the total branch count to 250 by March. By FY27, the company plans to have 325-330 branches.
Truhome Finance’s robust growth has also translated into an improved profitability, with the firm on track to deliver a profit of over Rs 500 crore this year. In terms of investment in technology, the company has earmarked Rs 100 crore for the next five years.
Navigating credit risk and seeking rating upgrade post-acquisition
On US tariff, Subramanian said Truhome, which largely caters to self-employed customers, is a bit cautious on segments which may get affected.
“Till now, we have not seen tariffs impacting the credit quality or credit performance of any self-employed segment. We are slightly more careful on segments which we think might get impacted. We have dropped LTVs (loan-to-value) and tightened the credit assessment criteria on those,” he said.
Subramanian also said the company is pitching to rating agencies for an upgrade to ‘AA+’. After the acquisition by Warburg Pincus, it was downgraded to ‘AA’.