Bengaluru/Mumbai, Dec. 25 -- Weaver Services Pvt. Ltd, an affordable housing finance company founded by former employees of HDFC Ltd, is in talks to raise about Rs.1,000 crores from Premji Invest and Paragon Partners, three people familiar with the matter told Mint.

"Some of the proceeds will be used to scale up Delhi-based Capital India Home Loans that the company acquired in October," one of the people cited above said.

While Paragon and Weaver did not respond, Premji declined Mint's requests for a comment.

Set up by Satrajit Bhattacharya, former head of investments and M&A at HDFC, and other former HDFC executives, Weaver is raising about Rs.800 crore from private equity players like Gaja Capital and Lok Capital to fund the acquisit...