December 2, 2024: Prosus, the global consumer internet group, expanded its diverse portfolio by acquiring an 8.4% effective stake in Vastu Housing Finance Corp Ltd for approximately $100 million. This marks a strategic step towards enhancing Prosus’s presence in the fast-growing Indian housing finance market. The acquisition, which includes a 7.8% fully diluted stake, reflects Prosus’s ongoing efforts to diversify and strengthen its investments in emerging markets.
Vastu Housing Finance, founded in 2015 by entrepreneurs Sandeep Menon and Sujay Patil, has become one of India’s leading housing finance companies, providing affordable home loans to underserved segments. Over the years, the company has expanded its footprint, now operating over 230 branches across 13 states. This acquisition will see Prosus become an equity-accounted associate, allowing the firm significant influence over Vastu’s board of directors.
A statement released by Prosus explained that the investment would be accounted for as an equity-accounted associate, citing the company’s significant influence on Vastu’s board. This means the global consumer internet group and large global technology investor intends to actively contribute to Vastu’s growth strategy, positioning itself as a key player in India’s housing finance sector.
Prior to this deal, Vastu Housing had raised an undisclosed funding round in July 2024, backed by global private equity firm TA. Furthermore, the company secured $30 million in a secondary sale, where funds managed by Multiples Alternate Asset Management and other shareholders sold their shares to Mumbai-based private equity fund Faering Capital. These investments highlight Vastu’s upward trajectory and growing presence in India’s competitive housing finance industry.
This move follows Prosus’s continued expansion into India’s financial services and fintech sectors. In the same month, the global technology investment giant also acquired a 10.65% stake in Mintifi Private Limited, a leading supply chain finance fintech, for $80 million. This investment further consolidates Prosus’s commitment to driving growth in India’s burgeoning fintech ecosystem.
Mintifi, which offers financing solutions to businesses in India’s supply chain, has experienced rapid growth in recent years. With the global consumer internet group and large global technology investor’s strategic investment, the fintech firm is poised for even greater expansion, reflecting the growing demand for innovative financial solutions in the Indian market.
Alongside these new investments, the global investment giant subsidiary PayU India has also shown robust performance. In H1 FY25, PayU India reported a 12% year-on-year (YoY) revenue growth, reaching $237 million. The increase in payment volumes and new merchant onboarding has contributed to PayU’s strong growth, particularly as it expanded its operations as a payment aggregator with approval from the Reserve Bank of India (RBI).
The global investment giant’s financial services division in India is benefiting from increased demand across key sectors, including ecommerce, government, and financial services. This success reinforces Prosus’s strategy to capitalize on India’s digital transformation and its growing fintech market.
Prosus Expanding Influence in India’s Housing Finance and Fintech Sector
The global technology investment firm investments in Vastu Housing Finance and Mintifi are part of a broader strategy to tap into India’s expanding digital economy, particularly in the areas of housing finance and fintech. With significant stakes in two high-growth sectors, the global technology investment giant is well-positioned to leverage its expertise and resources to foster innovation and create long-term value for stakeholders.
The latest developments show that the global consumer internet group and large global technology investor is not only strengthening its foothold in India’s financial ecosystem but also actively contributing to the nation’s digital and economic transformation. As the demand for affordable housing and financial technology solutions continues to rise, these strategic investments set the stage for a promising future in one of the world’s most dynamic markets.
