Japan’s Gozo-backed Aviom, with debt assets of Rs 990 crore, is in talks with the founder-cum-managing director of a global pension fund and a domestic private equity fund for fresh capital infusion. Kajal Ilmik Told ET.
The new investor will get a 30% stake for an investment of $30 million, valuing the six-year-old lender at around Rs 800 crore.
Ilmi said the fund will be used for further borrowing as the company aims to increase its debt assets to Rs 1,300 crore by March 2023 and Rs 2,500 crore by March 2024.
The lender provides loans to women, mostly from rural areas, without demanding formal income documents. Its average lending ticket is Rs 2.7 lakh.
Joy End Company currently holds a 39% stake in Aviom, while Saber Partners AIF Trust and Capital 4 Development Asia Fund Cooperative UA hold 12.8% and 7.43%, respectively. The promoters, led by Ilmi, hold 38.7%.
“We are providing loans to women borrowers who do not have any formal income document. Affordable mortgages enable women to build homes they otherwise could not afford and establish credit histories,” Ilmi said.
Over the next six months, Aviom wants to increase its disbursements to Rs 70-80 crore per month.
The company operates through 120-odd branches in 14 states and has a customer base of over 40,000.
“We want to cater to more people in low-income households in semi-urban and rural areas who are in need” home loans For home improvement, renovation and sanitation,” said Ilmi.
US International Development Finance Corporation (DFC), Blue Orchard Impact Investments, Water Equity Impact Investments, Triple Jump Impact Investments, Symbiotics Investments are lenders to Aviom, in addition state Bank of India, HDFC bank and other local institutions.
Aviom’s sourcing model, known as Aviom Shakti, has created earning opportunities for over 55,000 women, who work as referral agents for housing loans in exchange for commission. Going forward, it plans to add 3,000 women as agents every month.