Sammaan Capital Poised for Affordable Housing Push

Sammaan Capital will sharply expand its affordable housing lending operations after Abu Dhabi’s International Holding Company invested $1 billion for a controlling stake, the non-banking lender’s CEO, Gagan Banga, told Reuters. The infusion is expected to accelerate the drive toward an assets-under-management goal of ₹1 trillion by fiscal 2027.

To underpin its expansion, Sammaan plans to launch about ten new branches monthly, concentrating on tier-4 and tier-5 cities and suburban peripheries. Over the next six to nine months, the company intends to open 60 to 70 locations. Banga said that the first tranche of capital will be channelled into core products like home loans and loans against property, while subsequent funding rounds may support new offerings such as gold loans and personal credit for lower- and middle-income customers.

The IHC investment came via a preferential allotment, enabling the Abu Dhabi firm to secure approximately 41–43 percent equity in Sammaan, making it the promoter and giving it the right to appoint board members. The deal will also trigger an open offer under regulatory norms. It remains subject to approvals from the Reserve Bank of India, the Competition Commission, and other conditions.

Sammaan, which earlier operated under the Indiabulls Housing Finance brand before rebranding in July 2024, has 220 branches spread across 150 towns and cities, supported by a workforce of over 4,400. In August, the company raised $300 million via three-year overseas bonds—a first in its new identity—signalling confidence from global investors in its restructuring and strategy.

The affordable housing segment is seen across the financial ecosystem as a high-growth opportunity. Driving factors include sustained government support for low-cost housing, urbanisation, and gaps in access to credit in smaller towns and rural peripheries. Non-banking financial companies have been increasing their share in such segments, attracted by less competition from larger banks.

Sammaan aims to reclaim a place among India’s top three to five NBFCs by 2030. Banga cited IHC’s technology and capital strength as enablers for achieving scale across underpenetrated markets. He also emphasised the role of data analytics and AI in enabling more accurate risk assessment and faster disbursement in affordable housing finance.

Analysts caution that success hinges on regulatory clearances, execution in small markets, and managing credit risk in new geographies. Material cost inflation, subsidy delays, and local approvals for housing projects could strain margins. The interplay between government housing policies and private funding will be crucial: Sammaan’s ability to synchronise with state-level housing schemes will shape uptake in its target markets.