Press Release

Nivara Home Finance raised USD 10 million from Baring Private Equity India

Nivara Home Finance has raised USD 10 million from Baring Private Equity India in an entirely primary round. The proceeds from the round would be used to drive the growth and expansion of the company.

Founded in 2015, Nivara is focused on providing affordable housing finance to micro-entrepreneurs and salaried customers. The ticket size for these housing loans generally ranges between INR 5 lakhs-INR 7.5 lakhs, a relatively underserved segment since most affordable housing finance peers cater to a ticket size of INR 9-10 lakhs or higher. Presently, Nivara serves customers across five states, namely Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra, through its network of 63 branches. The Company has an AUM of ~INR 500 crore and has maintained robust asset quality, with its GNPA being 0.58% as of Feb 2024. The strong economics and controlled credit costs have helped Nivara deliver consistent profitability since its inception.

The Company was founded by Mr. CV Rao along with his co-founders, Mr. Sunil Rohokale and Mr. Monik Koticha. Unlike several peers, the Promoters consciously chose to bootstrap the Company in the initial stages and have infused ~INR 100 crore in the business to date.

EY acted as the exclusive financial advisor to Nivara for this transaction.

“Nivara is proud to partner with Baring Private Equity India in its next growth phase. There is a large underserved market in the ticket size we operate in Tier 2, 3, and 4 markets, and we have found a partner who shares our vision for the segment. This funding round will enable us to cement our position in this segment further and leapfrog our growth plans,” said CV Rao, MD & CEO, Nivara.

Debanshi Basu, Senior Principal at Baring Private Equity India, said, “The affordable housing finance space is poised for significant growth. Nivara’s focus on asset quality, its commitment to underserved segments, and the experience, expertise, and exceptional governance practices the management team, will propel the franchise for a long time to come.”

 

 

 

About Baring Private Equity India:

Baring Private Equity India is one of the oldest PE funds in the Indian subcon􏰀nent and has invested ~US$ 1 billion across companies in the region. It has invested in over 90 companies across diverse ver􏰀cals such as Technology, Life sciences, Banking and Financial services, Manufacturing, Real estate, and Consumer goods, and supported over 40 first genera􏰀on entrepreneurs.

For more information, visit www.bpepindia.com