Bengaluru-based VBHC Value Homes, co-founded by former Mphasis Chairman Jaithirth Rao and former Citibank senior official P S Jayakumar, has raised funding from Japanese real estate conglomerate Daiwa House Industry.
Though the company did not disclose the size of the investment, industry sources told Deccan Herald that Daiwa House Industry has invested close to Rs 100 crore in VBHC Value Homes. This deal also marks the first Japanese investment in affordable housing in India.
The funds raised would be used for expanding VBHC’s project portfolio, the company said, adding that no existing investor has exited in this round of investment. Some of the existing investors in VBHC include Carlyle, IFC, Caspian and StichtingVan Herk. Equirus Capital acted as exclusive advisors to VBHC for the fund raising.
According to a report by Cushman and Wakefield, the affordable housing segment in India presents a $11.8-billion opportunity across the seven cities of Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune. The demand for affordable housing across these seven cities is around 5.35 lakh units.
“The investment marks the continuous faith that the investors have showed in our company and its brand name, VBHC. And now, we are happy to partner with Daiwa House, one of the largest homebuilders in Japan, who will help VBHC achieve its next scale of growth through their expertise,” VBHC Chairman Jaithirth Rao said.