TPG's Grihum Housing Finance aims for Rs 8,200 crore loan book by fiscal year end

Global alternate assets management major TPG Capital-owned Grihum Housing Finance--the identity for Poonawalla Housing Finance--expects to close the current fiscal with a loan book of Rs 8,200 crore, up from Rs 7,500 crore now.

The company, which has seen three ownership changes in the past six years-- from Magma Fincorp to Poonawalla Housing and then to TPG from last December  has already crossed the Rs 7,500 crore AUM mark now.

TPG had announced the acquisition of a 99.02 per cent stake in the affordable housing focused Poonawalla Housing Finance late July 2022 for Rs 3,900 crore and completed the deal by December that year.

Along with that it had also announced infusion of additional Rs 1,000 crore into the company of which Rs 538 crore has already been given, Grihum Finance chief executive Manish Jaiswal told reporters here Tuesday announcing the new name.

The company is present in 19 states with 195 branches serving 75,000 customers who are mostly self-employed.

We have been growing at 28 per cent annually since the past six years. Our AUM grew to Rs 7,500 crore now from Rs 1,800 crore six years ago and we are on course to repeat that run-rate this year too and expect to cross Rs 8,200 crore AUM mark by March 2024. Our next three-year objective is to double this and touch Rs 15,000 crore by FY26, Jaiswal said.

He said the company has grown seven times when it comes to customer base in the past six years when Magma sold off the business to the Poonawallas --from 11,000 to 75,000 now (and nearly 85 per cent of them women) and so did the branches to 195.

It has opened 40 branches this year so far and will be adding an equal number next fiscal as well. He hopes to end the current fiscal with 1 lakh customers as well, he added.

At Rs 7,500 crore of live loans, the AMU growth has been 28 per cent each of the past six years and we will strive to maintain the same run-rate over the next three years, he said.

Puneet Bhatia, the co-managing partner at TPG Asia, expressed confidence in Grihum as a brand name resonating with growing customers base and also sees it strongly positioned to tap into the under-penetrated segment of affordable housing that is expected to grow at a much faster pace than the overall housing finance industry.

As much as 70 per cent of its assets are in home loans, 26 per cent comes from loans against property and the rest is in education loans, Jaiswal said.

TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with over $137 billion of assets under management. TPG invests across five multi-strategy platforms: capital, growth, impact, real estate, and market solutions.