Team Startupcity

• Weaver Services is set to raise Rs 1,200 crore in its maiden funding round, co-led by Lightspeed Venture Partners and Premji Invest.
• Founded by HDFC veteran Satrajit Bhattacharya, with Anil Kothuri as CEO, the company targets underserved housing finance markets.
• Funds will be used primarily for acquisitions, following its Rs 267 crore purchase of Capital India Home Loans.

Weaver Services, a newly launched housing finance company founded by former HDFC Limited veteran Satrajit Bhattacharya, is set to raise Rs 1,200 crore (approximately $140 million) in its first-ever funding round. According to sources familiar with the development, the round will be co-led by Lightspeed Venture Partners and Premji Invest, each investing around Rs 400 crore ($50 million), with additional contributions from Gaja Capital and a group of former HDFC senior executives, including ex-CEO Keki Mistry.

The Mumbai-based firm was set up just a month ago and is already attracting strong investor interest as venture capitalists shift focus toward non-tech, profit-making enterprises with long-term potential. In a strategic move, founder Bhattacharya will dilute a significant portion of his equity in this early-stage round to bring in multiple strategic investors. While Bhattacharya will continue as vice chairman, the operational responsibilities of the company will rest with Anil Kothuri, former MD & CEO of Fedbank Financial Services Ltd.

Weaver Services plans to utilize a major portion of the funds for acquisitions to scale rapidly in the competitive housing finance space. In October last year, the company acquired Capital India Home Loans for Rs 267 crore, marking its entry into the market. Sources indicate that Weaver is currently negotiating additional acquisitions to further expand its loan book.

This fresh capital infusion comes as venture capitalists increasingly pivot towards traditional sectors, including housing finance, given their profitability and clearer exit paths. The fintech and new-age tech sectors, on the other hand, have faced growing scrutiny due to prolonged loss-making models and uncertain returns.

Weaver’s strategy focuses on underserved markets, specifically Tier 2, Tier 3, and Tier 4 cities, targeting aspirational low-income households seeking affordable housing finance solutions. This niche positioning aligns with the growing investor interest in the housing finance segment, which has seen heightened activity over the past year.

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For instance, Vridhi Home Finance raised Rs 310 crore from Norwest Venture Partners in October, while Easy Home Finance secured Rs 300 crore in its Series B round led by Claypond Capital. In December, Prosus invested $100 million in Vastu Housing Finance, signaling the sector's growing momentum.

With an experienced leadership team and a targeted customer base, Weaver Services is positioning itself as a key player in India’s expanding affordable housing finance market. The upcoming funding round is expected to significantly boost its growth trajectory in an already crowded yet opportunity-rich sector.