HomeKraft sold a significant minority stake to the HDFC Capital Advisors Ltd.-managed HDFC Capital Affordable Real Estate Fund to launch a vehicle that will invest in affordable housing in India, MoneyControl News reported June 13.

The venture will use more than US$300 million from a combination of internal accruals, debt and private equity funds to develop affordable and mid-income housing in the country, the news agency noted, citing HDFC Ltd. Managing Director Renu Sud Karnad.

HDFC will provide HomeKraft with a flexible financial support that will help it narrow the gap between supply and demand in India's affordable housing sector.

Indian boutique and premium housing developer ATS Infrastructure Ltd. launched HomeKraft in March as its foray into affordable housing.