People Home Finance Ltd (PHFL), an affordable housing finance company backed by Premji Invest, aims to expand its loan portfolio to about Rs 120 billion over the next five years, said Anil Kothuri, Managing Director and Chief Executive Officer.

In August 2025, Weaver Services acquired a 100 per cent stake in Capital Home Loans Ltd, later rebranding it as People Home Finance. Around the same time, the company entered into an agreement to raise USD 170 million (Rs 14 billion) from Premji Invest and Lightspeed Venture to strengthen its housing finance operations.

Also in August, Weaver signed a deal to acquire a 75 per cent stake in Centrum Housing Finance Ltd (CHFL) for about Rs 6 billion. Currently, Centrum has a loan book of Rs 10 billion, while Capital’s stands at Rs 5 billion.

Kothuri said consolidation of the two housing finance entities and compliance with regulatory requirements were currently under way. “The combined entity will present its first balance sheet in FY27,” he stated.

Following the merger, PHFL expects to have a capital base of about Rs 20 billion and maintain leverage of four times. The company aims to grow its loan book to Rs 120 billion within five years, driven by fresh capital infusion and operational synergies.

With the new funding, People Home Finance plans to expand aggressively across Tier-II and Tier-III cities, focusing on underserved borrowers seeking affordable housing loans.

“The company will continue to invest in branches, people, proprietary technology, and risk management systems to make home ownership a reality for underserved Indians,” Kothuri said.

The expansion comes amid rising demand for affordable housing finance in smaller cities, with PHFL positioning itself to tap the segment through a technology-led lending model and partnerships that promote financial inclusion.