Mumbai: Muthoot Finance, India’s largest gold loan NBFC, has infused ₹200 crore into its wholly-owned housing finance subsidiary, Muthoot Homefin (India) Ltd (MHIL), to accelerate its expansion into more than 250 cities across the country. The strategic investment comes at a time when Muthoot Homefin is witnessing strong momentum in the affordable housing sector and aims to position itself as a formidable player in the space.
With this fresh capital, Muthoot Homefin has set an ambitious target to scale its Assets Under Management (AUM) more than four-fold over the next five years, with a sharp focus on Tier 2 and Tier 3 markets—India’s next big growth hubs. The company also plans to make strategic investments in technology, governance, risk management, and talent to ensure sustainable scale-up.
Commenting on the development, 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 disbursements grow nearly six times, while its AUM has doubled to ₹3,096 crore. The company has significantly strengthened its branch network, manpower, and direct sourcing capabilities, underpinned by technology-driven credit processes and improved governance frameworks.
Alok Aggarwal, CEO of Muthoot Homefin, added, “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.”
The company’s roadmap includes a calibrated branch expansion, continued improvements in asset quality, and focused investments in digital infrastructure and risk management frameworks. With this strategic capital raise, Muthoot Homefin is poised to strengthen its leadership in affordable housing finance and further its mission of enabling affordable homeownership for millions of Indian families.
