CCI Approves Acquisition By Naspers Ventures B.V. In Vastu Housing Finance Corporation

The Competition Commission of India (CCI) has granted its approval for the acquisition of equity in Vastu Housing Finance Corporation (VHFCL) by Naspers Ventures B.V., an indirect, wholly owned subsidiary of Prosus N.V. This strategic move by Naspers Ventures underscores its commitment to strengthening its investment portfolio in the Indian financial services sector.

Naspers Ventures is primarily an investment holding company that focuses on funding growth-stage companies through direct and indirect equity and debt investments. Its parent company, Prosus N.V., is a global consumer internet group, operating across various sectors such as online payments, food delivery, classifieds, and financial services.

Vastu Housing Finance Corporation, the target company in this acquisition, is a rapidly growing player in the Indian housing finance industry. VHFCL offers a wide range of financial products including home loans, home extension loans, plot and construction loans, and loans against property.

Additionally, it extends micro, small, and medium enterprise (MSME) loans, catering to the financial needs of individuals and businesses. VHFCL’s subsidiary, Vastu Finserve India Private Limited (VFIPL), further diversifies its portfolio by providing car loans, commercial vehicle loans, tractor loans, construction equipment loans, and loans against property.

The acquisition by Naspers Ventures involves purchasing less than 10 per cent of VHFCL's equity on a fully diluted basis. Although the stake is relatively small, it signals a growing interest in the Indian housing finance market, which is witnessing increasing demand due to urbanisation and government incentives for affordable housing.

With the CCI’s approval, this transaction paves the way for Naspers Ventures to gain a foothold in India's fast-evolving housing finance sector, supporting the growth of VHFCL as it seeks to expand its market share. The CCI's detailed order on the transaction will be issued in due course, providing further specifics regarding the deal.