Poonawalla Housing Finance Becomes Grihum Housing Finance
In a strategic move following its acquisition by TPG Capital Asia, Poonawalla Housing Finance has undergone a significant rebranding, emerging with a new identity — Grihum Housing Finance. This transformation comes as TPG Capital Asia acquired a substantial 99.02% equity stake in the company from Poonawalla Fincorp earlier this year.
The new name, Grihum, is a fusion of ‘Grih’ (home) and ‘Hum’ (togetherness), reflecting the company’s commitment to fostering collaboration and unity. Grihum Housing Finance is dedicated to creating the cherished space of a ‘Dream Home’ for its customers, a significant portion of whom are self-made individuals and micro-entrepreneurs in semi-urban, peri-urban, and rural regions, constituting 62% of the business from the self-employed informal sector.
With a compound annual growth rate (CAGR) of 28% in its Assets Under Management (AUM) over the last six years, Grihum Housing Finance aims to touch an AUM of ₹8,200 crore by March 2024. Looking ahead, the company has set an ambitious target of reaching ₹11,000 crore by the end of the fiscal year 2025.
Underlining its commitment to Grihum Housing Finance’s growth, TPG has pledged to infuse ₹1,000 crore, with ₹538 crore already disbursed. This capital injection will play a crucial role in supporting the company’s expansion plans and achieving its AUM targets.
Grihum Housing Finance currently boasts a customer base exceeding 75,000, served through a network of 195 branches. The company has plans to further strengthen its presence by adding 2-3 branches each month. Additionally, negotiations with three life and non-life insurance companies are underway for securing a corporate agency license.
As of September 30, 2023, the cost of borrowing for Grihum Housing Finance stands at 8.1%. The company maintains conservative loan-to-value (LTV) ratios, with housing loans ranging between 60% and 70% on average. The overall LTV ratio is positioned at less than 60%.
In line with its growth strategy, Grihum Housing Finance is gearing up to raise approximately ₹2,500 crore. This capital infusion will be orchestrated through a mix of channels, including banks, Non-Convertible Debentures (NCDs), and collaboration with multilateral agencies.
Q: Why did Poonawalla Housing Finance rebrand?
A: Following TPG Capital Asia’s acquisition, the company rebranded as Grihum Housing Finance, signifying a new identity and strategic direction.
Q: What are Grihum’s financial goals?
A: Grihum aims for an ₹8,200 crore AUM by March 2024 and ₹11,000 crore by FY25, backed by TPG’s ₹1,000 crore commitment.
Q: How does Grihum serve its customers?
A: With 75,000 customers, Grihum plans branch expansion and is in talks with insurers for partnerships, focusing on the self-employed sector.
Q: What is Grihum’s fundraising strategy?
A: To fuel growth, Grihum plans to raise ₹2,500 crore through banks, NCDs, and multilateral agencies.
There is an increasing trend of introducing modern trains in India’s railway network according to…
Nobel prizes in 2026 will be declared during the first half of October, and there…
The State government of Uttar Pradesh has announced that the Noida International Airport at Jewar…
The Nobel Peace Prize of 2026 was awarded to Navanethem “Navi” Pillay because of her…
Anup Bagchi is to be appointed as the MD & CEO of HDFC Bank on…
Performance by India in the 2026 Asian Games held in Aichi-Nagoya, Japan, was noteworthy because…