Baring Private Equity invests $10 mn in Nivara Home Finance

Nivara Home Finance has raised $10 million from Baring Private Equity India in a primary round of funding. The proceeds from the round will 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 ₹5 lakh and ₹7.5 lakh — a relatively underserved segment since most affordable housing finance peers cater to a ticket size of ₹9-10 lakh or higher.

Currently, 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 around ₹500 crore and has maintained robust asset quality, with its gross non-performing assets pegged at 0.58% as of February 2024.

The company was founded by C V Rao along with his co-founders, Sunil Rohokale and Monik Koticha. Incidentally, the Promoters chose to bootstrap the company in the initial stages and have infused ₹100 crore in the business till date.

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

“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 Rao, MD & CEO, Nivara.

In a similar context, Debanshi Basu, Senior Principal at Baring Private Equity India, said that 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,” said Basu.

Baring Private Equity India is one of the oldest PE funds in the Indian subcontinent and has invested around $1 billion across companies in the region. It has invested in over 90 companies across diverse verticals such as technology, life sciences, banking and financial services, manufacturing, real estate, and consumer goods, and supported over 40 first generation entrepreneurs.