Warburg Pincus Boosts Truhome Finance with Major Capital Infusion

Truhome Finance, an entity concentrating on the affordable housing sector, is scheduled to obtain an extra Rs 500 crore investment from its primary stakeholder, Warburg Pincus, later this month. This funding will escalate Warburg Pincus's total investment in the company, previously known as Shriram Housing Finance, to over Rs 2,000 crore.

Previously, Warburg Pincus invested Rs 1,200 crore in fresh funds and Rs 400 crore in compulsorily convertible debentures. The company's Managing Director and CEO, Ravi Subramanian, indicated this fresh funding would assist in preparing for a potential initial public offering, though the decision is ultimately up to the promoters. Truhome is committed to expanding its portfolio meticulously, maintaining quality while targeting a 30% growth rate annually over the next three years.

Post-acquisition by Warburg Pincus, Truhome is investing Rs 100 crore to enhance its technological backbone through a partnership with Salesforce, aiming to streamline processes and bolster sales efforts. By FY26, Truhome plans to increase its branch footprint from nearly 200 to 250 and expand its workforce significantly. Despite mounting competition, particularly from banks with access to cheaper funding, Truhome remains focused on the self-employed demographic where banks are less inclined to operate.

(With inputs from agencies.)