Housing finance company Nivara Home Finance Thursday said it has raised $10 million (Rs 83.4 crore) from Rahul Bhasin-led Baring Private Equity Partners India, a private equity firm that has focussed on early-stage venture capital deals in the last few years.
Nivara plans to use the funds to drive the growth and expansion of the company, the company said in a release.
“There is a large underserved market in the ticket size we operate in Tier 2, 3, and 4 markets. This funding round will enable us to cement our position in this segment further and leapfrog our growth plans,” said CV Rao, managing director and chief executive officer, Nivara.
Founded in 2015 by Rao, Sunil Rohokale and Monik Koticha, Nivara is focused on providing affordable housing finance to micro-entrepreneurs and salaried customers. The ticket size for these housing loans generally ranges between Rs 5 lakhs to Rs 7.5 lakhs.
Currently, the company caters to customers across five states, namely Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra. It operates a network of 63 branches and han asset under management of around Rs 500 crore. It claims that it has maintained robust asset quality, with its GNPA (Gross NPA) being 0.58% as of February 2024.
The promoters have infused Rs 100 crore in the business to date.
“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,” said Debanshi Basu, senior principal at Baring Private Equity India.
EY acted as the exclusive financial advisor to Nivara for this transaction.