Nivara Home Finance, which provides housing finance to India’s underserved communities, on Monday said it has raised Rs 245 crore ($28.2 million) in its Series B funding round led by private equity firm True North.
Other investors in the round include Baring PE and the company’s promoters Sunil Rohokale and Monik Koticha. While True North through its Fund 7 will invest Rs 170 crore, Baring PE India and the promotors will contribute Rs 50 and Rs 25 crore, respectively.
Founded by CV Rao, Rohokale, and Koticha in 2015, Nivara provides affordable housing finance to micro-entrepreneurs and informal salaried customers. The ticket size for these loans generally ranges between Rs 5-7.5 lakh, a relatively underserved segment since most affordable housing finance peers are catering to a ticket size of Rs 9- 10 lakh or higher, the company claims.
The company operates in five states and has an AUM of Rs 700 crore.
According to Tracxn, founders owned 81.22% of the company, funds 18.66%, and other investors 0.11% as of Mar 30, 2024.
With the newly raised funding, Nivara plans to extend its geographic presence into new markets, strengthen its distribution network, and develop innovative credit solutions.
“We believe the Indian affordable housing sector is poised for substantial growth, and Nivara is at the forefront of this transformation. Having closely observed the sector’s evolution, we are confident that Nivara, with its innovative approach, strong customer focus, and proven track record, is well-positioned to gain significant market share,” said Maninder Singh, partner at True North.
Nivara’s funding comes amid a rise in investor interest in the home financing sector. Other recent deals in the space include affordable housing finance company Ummeed Housing Finance ($76 million), Vridhi Home Finance ($37 million), Vastu Housing Finance Corporation Limited ($50-million loan), etc.
Last year, Nivara Home Finance raised $10 million from Baring PE India.
True North’s India portfolio companies include Niva Bupa Health Insurance and Home First Finance, while Baring PE Asia, one of the oldest fund managers in India, counts Battery Smart, Lohum, mPokket, BluSapphire and Videoverse, among its portfolio firms.
