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Home First Finance aims to grow AUM at 30%

The home financier’s assets under management rose 35% YoY to Rs 6,751 crore as on December 31.

The company’s average ticket size is Rs 5-25 lakh. It has a disbursement run-rate of Rs 250 crore per month.
The company’s average ticket size is Rs 5-25 lakh. It has a disbursement run-rate of Rs 250 crore per month.

Affordable housing financier Home First Finance is looking to grow its assets under management (AUMs) at 30% year-on-year by increasing penetration and market share, and entering into co-lending partnerships, chief executive officer Manoj Viswanathan has said.

“We have presence in 13 states now. Our stronger presence is in western and southern regions of the country. We want to stay focused on these markets as these are more industrialised, more urbanised markets and have a stronger demand for affordable housing. Our growth will primarily come from increasing our penetration, and deeper distribution in these markets. Currently, we are present in 200 cities. The idea is to take that to 400 cities in the next two years. Some part of the growth (AUM) will come from that,” he said.

“Some part of the growth will also come from increased market share. Currently, our market share in the regions that we are present is less than 2%. Our aim is to take the market share to 4-5% in the next two years. Increased market share will give us growth. We are also looking at co-lending as an avenue to increase our market share as it gives us access to formal customers who borrow at a higher ticket size,” he added.

The home financier’s assets under management rose 35% YoY to Rs 6,751 crore as on December 31. AUMs are expected to surpass Rs 7,000 crore by March 31, and Rs 9,000-10,000 crore by the end of 2023-24 (April-March).

The company’s average ticket size is Rs 5-25 lakh. It has a disbursement run-rate of Rs 250 crore per month.

Currently, the company has co-lending arrangements with Union Bank of India and Central Bank of India.

“Fundamentally, the differentiation is on our ability to assess customers. These are customers who do not have all the documents like salary slips, etc, required to assess credit-worthiness. You have to look at other documents or do a physical verification to understand income profile of customers. That is our unique selling proposition. Secondly, we do this very quickly for customers and partner builders and it is a very frictionless process with very less paper work,” Viswanathan said.

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First published on: 22-02-2023 at 02:35 IST
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