Nivara Home Finance secured USD 10 million from Baring Private Equity India to fuel its expansion in affordable housing finance. Founded in 2015, Nivara targets micro-entrepreneurs and salaried individuals with housing loans ranging from INR 5 lakh to INR 7.5 lakh, focusing on underserved markets. With a presence in five states and 63 branches, the company boasts INR 500 crore in assets under management and a low GNPA of 0.58%. Co-founded by CV Rao, Sunil Rohokale, and Monik Koticha, Nivara initially self-funded with INR 100 crore. The deal, facilitated by EY, highlights Baring Private Equity India's confidence in Nivara's asset quality and growth potential.
Nivara Home Finance recently received a big investment of USD 10 million from Baring Private Equity India, marking a significant step forward for the company. This money is aimed at helping Nivara grow faster and expand its reach.
Founded in 2015, Nivara specialises in providing affordable housing loans to both small business owners and salaried individuals. They focus on offering loans ranging from INR 5 lakh to INR 7.5 lakh, which cater to the specific needs of people often overlooked by other lenders.
Nivara operates in five states: Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra, with 63 branches spread across these regions. This strategic setup allows them to serve their customers well and take advantage of new opportunities in these areas.
With INR 500 crore in Assets Under Management (AUM), Nivara has a good track record of managing its finances well. Their Gross Non-Performing Assets (GNPA) are very low, at just 0.58% as of February 2024, showing their commitment to careful financial management and reducing risks.
CV Rao, Nivara's Managing Director & CEO, sees the investment as a chance to grow even more in the affordable housing finance sector. He believes that partnering with Baring Private Equity India will help Nivara strengthen its position in the market.
Nivara's journey began with its founders; CV Rao, Sunil Rohokale, and Monik Koticha?who invested INR 100 crore in the company early on, showing their strong belief in its mission and potential.
EY played a crucial role in advising Nivara throughout the investment process, ensuring everything went smoothly and aligned with their goals. This collaboration shows Nivara's commitment to following best practices and being transparent in its operations.
Debanshi Basu, a Senior Principal at Baring Private Equity India, shares Rao's optimism about the affordable housing finance sector's growth. Basu praises Nivara for its focus on asset quality, dedication to serving underserved groups, and strong governance practices, which she believes will lead to long-term success.
Baring Private Equity India's investment of USD 1 billion across various companies, including Nivara, shows their confidence in Nivara's potential and the overall market. This partnership opens up new opportunities for Nivara Home Finance as it continues to help small business owners and salaried individuals achieve their dream of owning a home.
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