Nivara Home Finance, a company that claims to provide affordable housing finance, has raised $10 million from Baring Private Equity India in an entirely primary round. The proceeds from the round would be used to drive the growth and expansion of the company. 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 CV Rao, MD & CEO, Nivara.
Debanshi Basu, Senior Principal at Baring Private Equity India, said, “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 of its management team will propel the franchise for a long time to come.”
Founded in 2015, Nivara is focused on providing affordable housing finance to microentrepreneurs and salaried customers. The ticket size for these housing loans generally ranges between Rs 5 lakhs and 7.5 lakhs, a relatively underserved segment since most affordable housing finance peers cater to a ticket size of Rs 9–10 lakhs or higher, according to a company statement.
Presently, 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 Rs 500 crore and has maintained its asset quality, with its GNPA being 0.58 per cent as of February 2024.
