Frontier Investment Group along with Saama Capital have invested $4 million (Rs 21.90 crore) in Shubham Housing Development Finance Co. that caters to the home financing needs of the low-income families.
Frontier Investment is a group company of Accion — a non-profit organisation which provides financial services to the under-served.
“Shubham’s mission is to provide mortgages and home-improvement loans to low-income families in urban areas of India,” Accion today said in a statement.
Frontier Investments and Saama Capital have joined Shubham’s current investors Elevar Equity and Helion Venture Capital in this second round capitalisation, totalling $8 million (about Rs 43.2 crore), it added.
Shubham provide mortgages and home-improvement loans for quality housing, to individuals typically excluded from formal financial systems, the statement said. It has operations in 17 locations across seven Indian states.
“Shubham’s innovative operating model has the potential to change the way significant numbers of urban Indians live - by delivering critical financial services to self-employed, low-income people,” Frontier Investments head, Monica Brand said.