Nivara Home Finance raises $10 million from Baring Private Equity

• Nivara was founded in 2015 and provides affordable housing finance to micro-entrepreneurs, and salaried customers.
• They provide loans with ticket sizes generally ranging between ₹5-7.5 lakh.
• It has 63 branches across five states - Karnataka, TN, AP, Telangana, and Maharashtra.
  

Bengaluru-based Nivara Home Finance raised $10 million from Baring Private Equity India in an entirely primary round, it said on Thursday. The proceeds from the round would be used to fund the company’s expansion.

The company was founded in 2015 and focuses on affordable housing finance for micro-entrepreneurs and salaried customers. It was founded by CV Rao along with his co-founders, Sunil Rohokale and Monik Koticha. The promoters bootstrapped it in the initial stages and infused ₹100 crore in the business to date.

They provide loans with ticket sizes generally ranging between ₹5-7.5 lakh. The company says that this is an underserved segment since most affordable housing finance peers cater to a ticket size of ₹9-10 lakh or higher.

“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 of Nivara.

Nivara serves customers across five states, namely Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra, through its network of 63 branches. It has assets to the tune of ₹500 crore under management. Its gross non-performing assets were at 0.58% as of February 2024.

“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.

Ernst & Young acted as the exclusive financial advisor to Nivara for this transaction.