• Plans to scale its AUM more than 4x over next five years
  • Funds to fuel expansion into Tier 2 & Tier 3 cities, the next growth hubs
  • Strategic investments planned in technology, governance, risk, and talent for sustainable scale-up

Mumbai : Muthoot Finance, India’s largest gold loan NBFC, has infused ₹200 crore into Muthoot Homefin (India) Ltd (MHIL), a wholly-owned housing finance subsidiary, for its expansion into more than 250 cities across India. This strategic investment comes at a time when Muthoot Homefin is witnessing strong business momentum and reflects its commitment to strengthen its presence in the affordable housing sector.

With this capital infusion, MHIL aims to scale its AUM over four-fold over the next five years and emerge as a formidable player in affordable housing finance, particularly across Tier 2 and Tier 3 markets. The company is also targeting a multi-year scale-up that focuses on expanding its pan-Indian footprint through sustainable and responsible growth.

Commenting on the development, Mr. George Alexander Muthoot, Managing Director of Muthoot Finance and sole shareholder of Muthoot Homefin, said: “This capital infusion by Muthoot Finance reflects our strong conviction in the fast-growing Indian economy and the critical role affordable housing will play in shaping India’s economic future. With the continued backing from Muthoot Finance, we are confident of scaling this business responsibly and sustainably. The strongest housing growth will come from India’s Tier 2 and Tier 3 cities, and this infusion equips us to deepen our presence in these markets while staying true to our mission of enabling dignified homeownership for first-time home buyers and self-employed customers.”

Over the last two years, Muthoot Homefin has seen its disbursements grow nearly 6x and Assets under Management (AUM) has doubled to ₹ 3,096 crore. The company’s branch network, manpower, and direct sourcing capabilities have scaled significantly, with a sharp focus on turnaround time, governance, and technology-led credit processes. The fresh funds will further enable Muthoot Homefin to strengthen its lending portfolio, deepen its footprint across underserved housing markets, and invest in digital infrastructure and talent.

“After the COVID-19 pandemic we have been strengthening systems, and sharpening execution. This investment is not just about growth, but about enabling the dream of homeownership for aspiring Indian families,” Mr. Alok Aggarwal, CEO of Muthoot Homefin added.

The roadmap includes a calibrated expansion of branches, sustained improvements in asset quality, and strategic investments in technology, talent, and risk frameworks – with the goal of delivering long-term shareholder value while staying true to its mission of enabling homeownership.

With this capital raise, Muthoot Homefin is poised to further elevate its market presence in the affordable housing finance segment, continuing its mission of enabling affordable homeownership for millions of aspiring Indian families.