Carlyle Puts $26M into Indian Home Builder

The Carlyle Group is investing $26 million India’s Value & Budget Housing Corp., Reuters reported Thursday. The money will be used to fund the building of new, affordable homes. Privately-held VBHC was co-founded by former Citigroup executive Jaithirth Rao.

(Reuters) – U.S. Private equity firm Carlyle Group said on Thursday it will invest $26 million in India’s Value & Budget Housing Corp (VBHC), a builder of entry-level housing in the country.

The funds will be used to build new homes, Carlyle said in a statement. VBHC has sold more than 1,000 homes in the last year and will begin the sale of another 900 houses next month, the companies said.

Privately-held VBHC was co-founded by former Citigroup executive Jaithirth Rao, who is also a former chairman of Indian software and back-office services firm Mphasis Ltd .

India is plagued by a severe shortage of affordable housing, with many private developers focusing largely on the luxury market.

(Reporting by Devidutta Tripathy; editing by Tony Munroe)