Gunit Chadhas APAC Financial Services gets Rs 250 crore fund
Mumbai: Multiples Alternate Asset Management has invested Rs 250 crore in Gunit Chadha-promoted APAC Financial Services. The company, which got a nonbanking finance licence from the Reserve Bank of India and a housing finance company licence from National Housing Bank earlier this year, has capital of Rs 400 crore funded by Multiples PE, Chadha and the leadership team.
The APAC group has already started lending in the micro and medium enterprise segment after starting operations in mid-2018. On the retail mortgages front, the company has set up branches in Mumbai to cater to the underserved affordable housing segment. It is looking to grow its book size to Rs 1,000 crore by the end of the financial year.
APAC started with an initial capital of Rs 125 crore contributed by founder Chadha and the leadership team and majority control remains with the management.
“We have drawn down the full capital of Rs 250 crore from Multiple,” said Chadha. “The control stays with the founder and the management. One of our reasons for the leadership team investing in the company is to ensure a strong governance model and conservative risk management. We like to build business which has tailwinds over the next decade.” The company is looking to expand business through a combination of a heavily physical model and physical combined with digital model. APAC Financial Services is targeting micro SMEs in Rs 5-25 lakh range, which are difficult to execute but will lead to less competitive pricing.