Nivara Home Finance has secured $10 million from Baring Private Equity India in an entirely primary round.
The funds will be used towards the startup’s growth and expansion.
Founded in 2015 by CV Rao, Sunil Rohokale, and Monik Koticha, the Bengaluru-headquartered company provides affordable housing finance to micro entrepreneurs and salaried customers.
“Nivara is proud to partner with Baring Private Equity India in its next growth phase. There is a large underserved market in the ticket size we operate in Tier II, III, and IV 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 Home Finance.
EY is the exclusive financial advisor to Nivara on this transaction.
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The housing loans offered by Nivara fall in the range of Rs 5 lakh to Rs 7.5 lakh. The segment is considered underserved as most of the company’s peers primarily target loan sizes of Rs 9 lakh to Rs 10 lakh or more.
“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 the management team will propel the franchise for a long time to come,” said Debanshi Basu, Senior Principal at Baring Private Equity India.
Nivara has a network of 63 branches and serves customers across Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra. The company claims to have assets under management of Rs 500 crore and gross non-performing assets at 0.58% as of February 2024.
Edited by Swetha Kannan
