Warburg Pincus to invest ₹500 cr in Truhome Finance, says CEO Subramanian

He further mentioned that, aside from the fund infusion, the company has the "scale and figures" needed for an initial public offering

Truhome Finance, which operates in the affordable housing segment, is set to receive an additional ₹500 crore capital infusion from its largest shareholder, private equity major Warburg Pincus, later this month.

 

“Warburg (Pincus) previously invested ₹1,200 crore in fresh funding and ₹400 crore in compulsorily convertible debentures. Now, they will invest another ₹500 crore by the end of October,” said Ravi Subramanian, managing director and chief executive officer (CEO), Truhome Finance, told news agency PTI.

 

He added that, beyond the fund infusion, the company possesses the “scale and figures” needed for an initial public offering (IPO). However, the ultimate decision to go public will rest with the promoters.

 

Subramanian emphasised that the lender is prioritising robust growth in its loan portfolio while maintaining strong asset quality, noting that its one-day past-due levels currently remain below 5 per cent.

 

With this latest round of funding, Warburg Pincus’ total investment in Truhome, previously known as Shriram Housing Finance, will exceed ₹2,000 crore.

 

The CEO further stated that Truhome plans to expand its loan portfolio at a rate exceeding 30 per cent annually over the next three years.

 

Following its acquisition by the private equity firm, the non-banking lender has embarked on a ₹100 crore investment in technology. This includes a partnership with leading customer relationship management provider Salesforce to revamp several processes.

 

Subramanian also outlined the company’s branch expansion plans, noting that Truhome aims to grow its network to 250 branches by the end of financial year (FY)26, up from around 200 at present, and add an additional 75 branches in the next financial year. The workforce is expected to increase to 6,500 by the end of FY27, compared with 5,000 currently.

 

Earlier in March this year, Truhome Finance had raised about ₹870 crore through its maiden syndicated external commercial borrowing (ECB) to fund affordable housing. This funding came via a social loan facility arranged by DBS Bank and Sumitomo Mitsui Banking Corporation (SMBC), which acted as lead arranger and book-runner, as well as joint social loan coordinators.