Nivara Home Finance raises 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 company stated that the proceeds from the round would be used to drive the growth and expansion of the company. 

Nivara Home Finance: Company background

Nivara was founded in 2015. It is focused on providing affordable housing finance to micro-entrepreneurs and salaried customers. 

The ticket size for Nivara's housing loans generally range between Rs 5 lakh to Rs 7.5 lakh, in a relatively underserved segment since most affordable housing finance peers cater to a ticket size of Rs 9 to 10 lakh or higher. 

At present, Nivara serves customers across five states — Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra, through its network of 63 branches. 

The company has an AUM of ~Rs 500 crore and has maintained robust asset quality, with its GNPA being 0.58 per cent as of February 2024. 

It was founded by CV Rao along with his co-founders, Sunil Rohokale and Monik Koticha. The promoters chose to bootstrap the company in the initial stages and have infused ~Rs 100 crore in the business to date. 

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

Talking about the development, CV Rao, MD & CEO of Nivara, said, “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.” 

Debanshi Basu, Senior Principal at Baring Private Equity India, added, “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.”