Nivara Home Finance has successfully raised $10 million from Baring Private Equity India. This funding, derived from a primary investment round, is earmarked to propel the affordable housing finance company’s growth and bolster its expansion efforts across India.
Established in 2015 by a trio of entrepreneurs—CV Rao, Sunil Rohokale, and Monik Koticha—Nivara Home Finance has carved a niche for itself in the domain of housing finance. The company is dedicated to providing affordable financing options to micro-entrepreneurs and salaried individuals, offering loans that range between Rs 5 lakhs and Rs 7.5 lakhs.
With an operational footprint spanning five states—Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra—Nivara operates through a network of 63 branches. This strategic presence allows the company to reach a diverse client base, promoting homeownership among segments of the population that are traditionally underserved by the conventional banking sector.
As of February 2024, Nivara Home Finance reported an Asset Under Management (AUM) of Rs 500 crore, alongside a notably low gross non-performing assets (GNPA) ratio of 0.58%. These figures not only attest to the company’s financial stability but also reflect its effective risk management and prudent lending practices.
The investment by Baring Private Equity India, a veteran in the private equity sphere of the Indian subcontinent, signifies a robust vote of confidence in Nivara’s business model and growth trajectory. Baring has a rich history of investing in the region, with approximately $1 billion deployed across more than 90 companies, including names like Battery Smart, Lohum, mPokket, BluSapphire, and Videoverse.
This influx of capital is expected to drive Nivara’s expansion into new markets and enhance its operational capabilities, thereby enabling the company to serve a larger cohort of customers seeking affordable housing finance. The partnership between Nivara Home Finance and Baring Private Equity India marks a critical juncture in the former’s journey, setting the stage for an era of accelerated growth and increased impact in the affordable housing finance sector.
This investment highlights the growing interest and potential within the affordable housing finance industry, underscoring the pivotal role such financial institutions play in promoting economic inclusion and stability. As Nivara Home Finance embarks on its next phase of growth, it carries with it the potential to significantly impact the landscape of housing finance in India, making the dream of homeownership a tangible reality for many.
