Kirin Social Ventures

Market Based Affordable Housing for Urban Poor

Facts about the URBAN POOR

They are not poor by affordability but are poor with accessibility
There are more than 28% of urban families (in pune) who earns on a household level upwards of 20000/- a month (multiple earning members) Majority of these families wont have even one pay-slip to show as income proof leads to financial exclusion from main stream housing finance Currently live in a shady condition, not more than 125 sqft for themselves. More importantly no title to land based assets

Lack of product options in housing in their affordability range

Minimum of any housing projects in tier 2 city starts upward of 10 lakhs

Main stream builders are not willing to look at this market because, frankly they dont know the clients
They have to deal with 20 times more customers than a normal housing project Cannot think of a 25-30% profit margin, as normally it is between 50 and 100%

How Kirin wants to tackle them?

We have created a business model which works on 30-35% margin and still serve these clients in a profitable way
Land will be in the periphery of existing developments in terms of housing in a city Small homes designs, ranging from 300 to 500 sft area. Starting with 1 Room and kitchen design Minimal maintenance burden on housing societies (with no lifts, and hence low rise buildings) Community building initiatives to be incorporated to these projects there by increasing the income generating capacity of the clients

We have identified and established contact with 4 financial institutions whos mandate itself is to give housing loans to the above said informal sector
MHFC, SHUBHAM, Muthoot Finance, Gruh Finance

We have created strategic partnership with social organizations who understand the needs of these clientele
They will function as the demand aggregators and our channel to sell the project to the needy customers Shelter Associates is one of such social organization

Financial Institution
Social organization

Support systems of project execution

Kirin

Thanks