In a significant development for the affordable housing finance sector, Nivara Home Finance has successfully secured a $10 million investment from Baring Private Equity India. This infusion of funds, garnered through a primary round, is poised to fuel Nivara’s growth trajectory and expansion initiatives.
Founding and Mission:
Established in 2015 by CV Rao, Sunil Rohokale, and Monik Koticha, Nivara Home Finance operates out of Bengaluru, India. The company’s primary focus lies
in providing accessible housing finance solutions to micro entrepreneurs and salaried individuals. Nivara’s mission is deeply rooted in addressing the housing needs of underserved segments, particularly in Tier II, III, and IV markets.
Partnership Announcement:
Expressing pride in the strategic partnership with Baring Private Equity India, CV Rao, Managing Director & CEO of Nivara Home Finance,
highlighted the shared vision for the underserved market segment. The collaboration with Baring Private Equity India is expected to fortify Nivara’s position in the industry and expedite its growth plans.
Financial Advisory Support:
EY, a global leader in assurance, tax, transaction, and advisory services, has served as the exclusive financial advisor
to Nivara Home Finance throughout this transaction. Their expertise has played a pivotal role in facilitating the successful completion of the investment deal.
Market Position and Loan Offerings:
Nivara Home Finance distinguishes itself by offering housing loans ranging from Rs 5 lakh to Rs 7.5 lakh, catering specifically to the underserved segment of the market.
This focus on lower ticket sizes is in contrast to many competitors who primarily target larger loan sizes, typically ranging from Rs 9 lakh to Rs 10 lakh or more.
Growth Potential and Strategic Outlook:
Debanshi Basu, Senior Principal at Baring Private Equity India, emphasized the immense growth potential within the affordable housing finance space. Basu lauded Nivara’s commitment to asset quality and underserved segments,
alongside the expertise and governance practices of its management team. These factors are expected to drive sustained growth for Nivara Home Finance in the foreseeable future.
Operational Footprint and Performance Metrics:
Nivara Home Finance currently operates through a network of 63 branches, extending its services across key regions including Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra.
As of February 2024, the company reports assets under management amounting to Rs 500 crore, with gross non-performing assets standing at a commendable 0.58%.
Conclusion:
With the backing of a $10 million investment from Baring Private Equity India, Nivara Home Finance is poised to further solidify its position as a key player in the affordable housing finance sector.
The partnership underscores a shared commitment to addressing the housing needs of underserved segments and signifies a promising trajectory for Nivara’s future growth and expansion endeavors.
Read
More On: Thestartupscoup.Com
