SEWA Grih Rin Ltd, an affordable housing finance company of the Self-Employed Women's Association (SEWA) Group, has raised
₹120 crore in debt financing round from
British International Investment (BII), the UK's development finance institution and impact investor.
The fresh capital will be used to enable Sitara to enhance its loan book, expand operations into new locations, and continue supporting women in realising their dream of homeownership through providing access to finance for home construction and home improvements, a statement said.
“The substantial investment of ₹1,200 Million from BII will serve as a catalyst for Sitara's rapid expansion, empowering us to amplify our efforts in supporting the underserved. A key focus of this partnership is to extend home loans to women from the informal sector, thereby contributing to financial inclusion and women's economic empowerment,” said Shruti Gonsalves, MD and CEO, Sitara.
Incepted in 2015, Sitara currently operates through a network of 75 branches across 9 states. Its business model combines lending with social impact, focusing on the niche market of housing for families working in the informal sector. Sitara's operations include providing loans in the range of ₹50,000 to ₹30 lakhs for house construction, extension, purchase, and renovation. The firm is registered with the National Housing Bank and regulated by the Reserve Bank of India.
"The housing crisis in India has been exacerbated by urbanization and migration. In cities, many low-income families face challenges due to informal job natures and poor living conditions. We are delighted to work with Sitara and enable access to affordable housing finance, particularly for low-income households and women, to build safer and better homes. We are keen to see our investment reach more underserved groups of people and create deeper and longer lasting impact on their livelihoods," said Gaurav Malhotra, Director for Financial Services at BII.
Sitara claims to have played a pivotal role in advancing the formalisation of land titles, transforming 47% of loans from informal to formal status. Additionally, it said 48% of assets are financed in the name of women, marking a significant stride towards empowering women in property ownership and economic participation.
