Bengaluru-based Janaadhar India Pvt Ltd, founded by entrepreneur Ramesh Ramanathan, has partnered with UK-based affordable housing impact investor, Reall, to build budget housing projects in the country.
This will be Reall’s first partnership with an affordable housing developer in India. Reall, which is funded by UK’s Department for International Development (DFID) and the Swedish International Development Agency (SIDA), has been at the forefront of affordable housing for over 30 years, impacting over 3.5 million people across Africa and Asia.
Unitus Capital was the exclusive financial advisor for enabling this partnership.
Janaadhar aims to fill the shortage of 10 million units in affordable housing development through high-quality, spatially efficient houses for economically weaker section (EWS) and low-income group (LIG) families in India.
So far, Janaadhar has delivered 1,500 EWS and LIG homes in Karnataka and Gujarat. “Patient capital is fundamental to EWS/LIG housing development by private players. We are really excited by the catalytic role Reall's partnership will play in delivering homes for the EWS/LIG segments while also crowding in other sources of capital. Reall's deep expertise in affordable housing will allow us to access innovative solutions through their vast networks globally. We are very excited by this partnership and the impact we can have on low-income communities together." said Ragunath Srinivasan, executive director, Janaadhar.
Janaadhar also plans to introduce pre-cast technology, which allows for lower costs, superior construction, and greater efficiencies.
Currently, the developer is on its way to undertake development of over 2,000 affordable homes in Karnataka, Gujarat, Rajasthan, and Maharashtra.
“…This partnership not only has the potential to change thousands of lives, but through Janaadhar’s market leadership and Reall’s breadth of experience brings with it the opportunity to truly transform the affordable housing eco-system in India. Reall’s mission is to demonstrate that the delivery of truly affordable housing is both a necessity and a commercial opportunity, and we are thoroughly looking forward to working with Janaadhar to further this cause." said Emma Ahmed, Head of Asia Operations at Reall.
“…By carefully assessing the market needs and studying their customers, Janaadhar has lined-up affordable housing projects in new geographies for its next wave of development. The partnership with Reall will immensely help them in that journey that is addressing one of the most challenging problems in the world," said Richa Natarajan, director at Unitus Capital.