Nivara Home Finance Ltd said Monday it has raised fresh capital in a Series B funding round led by private equity firm True North.
True North, via its seventh fund, invested Rs 170 crore while existing investor Baring PE India chipped in with Rs 50 crore, the mortgage lender said in a statement.
The company’s promoters Sunil Rohokale and Monik Koticha will contribute Rs 25 crore in the round, Nivara said. This takes the total capital raised in the Series B round to Rs 245 crore ($28.2 million), though the external funding amount is Rs 220 crore.
Rohokale is also CEO and MD of financial services provider ASK Group while Koticha is part of ASK's promoter family.
The company said that it will use the fresh capital to enhance its proprietary technology platform, extend its presence into new markets, strengthen its distribution network, and develop new credit solutions.
“This Series B round will empower us with confidence to grow in more geographies and customer base and march forward in achieving our vision of revolutionizing the way affordable housing finance is done in India,” said CV Rao, managing director and chief executive officer at Nivara.
The fundraise comes almost a year after the Bengaluru-based company raised around Rs 85 crore from Baring PE India in a Series A round in April last year. Prior to that round, the company’s promoters infused Rs 100 crore into the company.
Nivara Home Finance has been operational for around a decade. The company operates in five states with a network of 68 branches in southern and western states in India. The company has assets under management of Rs 700 crore. Its gross non-performing asset ratio stood at 0.5% as on March 2024.
Nivara joins True North’s financial services portfolio that also includes Niva Bupa Health Insurance, Home First Finance, and Fedbank Financial Services, among others.
“Having closely observed the affordable housing 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.
