Nivara Home Finance, a leading provider of affordable housing finance in India, has secured a $10 million investment from Baring Private Equity India. This primary round of funding will be instrumental in driving the company's expansion plans and solidifying its position as a key player in the underserved affordable housing sector.
Founded in 2015, Nivara has carved a niche for itself by catering to micro-entrepreneurs and salaried customers seeking housing loans in the range of ₹5 lakh to ₹7.5 lakh. This segment has traditionally been overlooked by mainstream financial institutions, leaving a significant gap in the market. Nivara's focus on this underserved demographic has proven successful, with the company boasting a robust asset quality and a gross non-performing asset ratio of a mere 0.58% as of February 2024.
The company's impressive track record attracted the attention of Baring Private Equity India, one of the most established private equity firms in the Indian subcontinent. With a rich history of investing in diverse sectors, Baring Private Equity India recognized the immense potential in Nivara's unique approach to affordable housing finance.
"There is a large underserved market in the ticket size we operate in Tier 2, 3, and 4 markets," said C V Rao, MD & CEO of Nivara. "We have found a partner who shares our vision for this segment. This funding round will enable us to further cement our position and leapfrog our growth plans."
Debanshi Basu, Senior Principal at Baring Private Equity India, echoed Rao's sentiment, highlighting the exciting prospects within the affordable housing space. "Nivara's unwavering commitment to underserved segments, coupled with their focus on asset quality and strong leadership, positions them for exceptional growth in the years to come," said Basu.
The $10 million infusion will empower Nivara to expand its reach across India. The company currently operates through a network of 63 branches in five states – Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra. With this new funding, Nivara is poised to establish a wider presence and empower a larger pool of individuals to achieve their homeownership aspirations.
Nivara's success story is a testament to the growing demand for accessible housing finance solutions in India. By bridging the gap for those traditionally excluded from mainstream financial services, Nivara is paving the way for a more inclusive and empowered housing market. This investment from Baring Private Equity India serves as a significant validation of Nivara's innovative approach and its commitment to financial inclusion in the Indian housing sector.
