### **Overview** Aptus Value Housing Finance India Ltd. (APTUS), founded in **2009** and headquartered in **Chennai**, is a rapidly growing, regulated housing finance company (HFC) under the aegis of the **Reserve Bank of India (RBI)** and supervised by the **National Housing Bank (NHB)**. The company specializes in affordable housing and small business finance for **low- and middle-income (LMI)**, **self-employed individuals** in **Tier-II, III, and IV towns** across India, particularly those excluded from formal banking due to lack of traditional income documentation. APTUS has emerged as a **market leader in South India** and is strategically expanding into non-South states—**Maharashtra and Odisha**—to diversify its portfolio. As of **October 2025**, the company operates **321 branches** across **six states (Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, Maharashtra)** and **one Union Territory (Puducherry)**, serving **172,000 customers** with a deep focus on financial inclusion, customer centricity, and operational excellence. --- ### **Business Model & Market Focus** - **Target Segment**: - **79% self-employed borrowers**; 75–78% from the **Low-Income Group (LIG)**. - Primarily first-time homebuyers, property improvers, and micro-entrepreneurs. - 89% of loans include **women as applicants or co-applicants**, reflecting strong inclusive finance practices. - Most customers earn **less than ₹50,000 per month** and reside in **semi-urban and rural areas (78% rural footprint)**. - **Geographic Focus**: - Core strength in **South India**: Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka. - **Contiguous expansion** strategy into **Maharashtra and Odisha**, prioritizing new geographies based on **demographics, urbanization, competition, and delinquency trends**. - Aims to strengthen presence every **50–60 km**, using a **hub-and-spoke model** for operational efficiency. - **Loan Products**: - **Housing Loans (HL)**: For home purchase, self-construction, extension, and home improvement. - **Small Business Loans (SBL)** / Sustainable Business Loans (SBL): Secured against self-occupied residential property. - **Loans Against Property (LAP)**. - Loan ticket sizes range from **₹5 lakh to ₹20 lakh**, with **average loan size between ₹8–9 lakh**. --- ### **Financial & Operational Performance (As of Q2 FY26 / Oct 2025)** - **Assets Under Management (AUM)**: ₹**11,767 crore**, reflecting **22% YoY growth**. - **Q2 FY26 Disbursements**: ₹**963 crore**, up **24% quarter-on-quarter**. - **Regional AUM Breakdown (H1 FY26)**: - **Andhra Pradesh**: ₹5,023 crore (+24% YoY) - **Tamil Nadu**: ₹3,773 crore (+15% YoY) - **Telangana**: ₹1,974 crore (+27% YoY) - **Branch Network**: **321 branches**, with **20 new branches added in Q2 FY26**. - **Workforce**: Employs **3,717 people**, with localized hiring across operational regions. --- ### **Growth Strategy** APTUS is on track to achieve its **strategic vision of ₹25,000 crore AUM by FY28**, growing at a targeted **30% CAGR**. Key growth levers include: 1. **Geographic Expansion**: - Deepening penetration in under-penetrated areas within existing states. - Scaling operations in **Maharashtra and Odisha**. - Plans to operate **~450 branches** by FY28. 2. **Product & Segment Diversification**: - Maintaining dominance in **home loans**, while increasing focus on **small business loans** to diversify income streams. - Targeting **“new-to-credit”** retail borrowers in underserved markets. 3. **Digital Transformation**: - **End-to-end digital platform** supports sourcing, underwriting, disbursal, and collections. - **21% of new business originates digitally** (up from 0% pre-2024), with a target of **25% in FY26** and **30%+ thereafter**. - Key platforms: **Customer App, Bandhu (referral) App, Sales App, Property App, and Loan Origination System (LOS)**. - **97% digital collections**, **88–99% digital agreements**, and **100% E-NACH adoption**. 4. **Risk & Underwriting Excellence**: - Proprietary credit assessment models using **50+ data points**, **cash flow proxies**, and **field insights** to evaluate borrowers without formal income proof. - **Machine learning models** for default prediction, payment bounce forecasting, and pre-closure analytics. - Conservative underwriting: **LTV of 35–45%**, **low installment-to-income ratios (IIR)**, and **secured self-occupied properties as collateral**. 5. **Operational Scalability**: - Fully in-house model with **zero reliance on third-party distributors (DSAs)** or builders. - Centralized underwriting powered by **AI/ML scorecards**, with decentralized field operations for customer engagement. - Investment in **second-line leadership** (IT, credit, legal, technical) to support sustainable growth. --- ### **Technology & Digital Infrastructure** - **Proprietary Loan Origination System (LOS)** enabling **paperless, real-time processing**. - **API integrations**: OCR, Account Aggregator, E-KYC, E-NACH. - **Field Tools**: Mobile apps for sales, technical verification, credit checks, and geo-tagging. - **Business Intelligence (BI) platform** for real-time dashboards and decision-making. - **Over 90% digital onboarding**, **94%+ digital collections**, and **99% app registration rate** (Q4 FY25). --- ### **Funding & Capital Strength** - **Diversified funding mix**: Banks (63%), NHB (24%), NCDs (5%), securitization & others (8%). - As of **March 31, 2025**: - **Liquidity**: ₹1,155 crore (including ₹678 crore undrawn credit lines). - **Net Worth**: Over ₹4,317 crore. - **Capital Adequacy Ratio**: **70%** – significantly above regulatory requirements. - Raised **₹900 crore via NCDs** from mutual funds in FY25 for funding diversification. - **Strategic partnership with IFC (World Bank Group)**, enhancing global credibility and access to low-cost capital. --- ### **Governance, Recognition & Vision** - **Governance**: Led by experienced management, founder-promoter **M. Anandan (CMD)**, and marquee investors. Board includes professionals like **Suman Bollina (Non-Executive Director)**. - **Industry Recognition**: - Winner of **‘India's Leading Housing Finance NBFC (Mid)’** by Dun & Bradstreet (2023). - **Best NBFC Award 2022–23** by Financial Express. - Maintained strong asset quality during **Covid-19, demonetization, and inflationary pressures**. - **IPO Plans**: Filed **Draft Red Herring Prospectus (DRHP)** with SEBI; IPO approved to strengthen balance sheet and fuel growth.