Truhome Finance Eyes IPO as Warburg Pincus Pumps in Rs 500 Crore Fresh Funding

Mumbai, October 6, 2025: Affordable housing finance provider Truhome Finance (formerly known as Shriram Housing Finance) is all geared up for an upcoming IPO (Initial Public Offering) after receiving a ₹500 crore infusion from the largest shareholder (Warburg Pincus), whose receipt is due later this month. This investment will increase the private equity’s total investment in Truhome to over ₹2000 crore, marking a significant point in the company’s growth journey. The size and other details of the IPO are not yet disclosed by the company.

Truhome Finance Eyes IPO Warburg Strengthens Stake Ahead of IPO Plans

According to Mr Ravi Subramanian, Managing Director and CEO of the company, Warburg Pincus’s existing investment comprises ₹1200 crore in equity and ₹400 crore in compulsorily convertible debentures. As the investment increases by ₹500 crore, the company is well-capitalised for the next phase of expansion, which is the public offer. The MD and CEO further suggested that the company is ready for public listing as the scale and numbers are well in place. However, the final decision lies in the hands of the company’s promoters.

Truhome Finance Eyes IPO Robust Growth with Strong Asset Quality

The company continues to focus on high-quality growth across the portfolio that comprises of affordable housing. The lender has a total AUM (Asset Under Management) of ₹20000 crore, with less than 1% of total loans overdue beyond 90 days, and one-day past due levels below 5%.

The company aims to end FY26 with AUM above Rs 23,000 crore, targeting Rs 25,000 crore by June 2026, while sustaining annual growth of over 30% for the next three years.

Truhome Finance Eyes IPO Technology Push and Network Expansion

After Warburg’s acquisition, Truhome has increased its commitment to technology transformation. The company has invested in excess of ₹100 crore and partnered with Salesforce to improve the CRM processes and streamline internal processes.

The company plans to expand its branch network from nearly 200 to 250 outlets by FY26, and add another 75 branches in FY27. The workforce is also expected to increase from 5,000 to 6,500 employees over the next two years.

Truhome Finance Eyes IPO Focused on Self-Employed Borrowers

The company faces competition from banks, which have recently entered the affordable housing segment. However, the difference between TruHome and banks lies in the assessment of the creditworthiness of customers. Banks prefer lending to salaried customers, whereas almost 80% of Truhome’s AUM comprises self-employed borrowers.

The MD and CEO of the company further explained how banks are more comfortable in providing credit access to salaried employees due to the ease of evaluating creditworthiness and ensuring fewer issues in recovery. However, Truhome relies on different data points to evaluate the creditworthiness of self-employed clients and hence a major part of the total advances is for this category of customers.

With Warburg Pincus’ backing, expanding technology capabilities, and disciplined asset quality, Truhome Finance is positioning itself for accelerated growth — setting the stage for a potential IPO in the coming years.

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