Aniket PujariBengaluru: Nivara Home Finance Ltd has raised ₹245 crore in its series B round led by private equity firm True North.
Other existing investors in the round were Baring PE India and its promoters–Sunil Rohokale and Monik Koticha, the company said in a statement on Monday.
True North has invested ₹170 crore from its seventh fund, while Baring and the promoters have contributed ₹50 crore and ₹25 crore respectively, according to the statement. The company did not reveal details on the valuation.
The new funding round comes less than a year after Nivara raised ₹83 crore (or $10 million) in its series A round led by Baring in March 2024 at a valuation of around $54.6 million.
In the initial years, the company functioned as a bootstrapped business and infused about ₹100 crore prior to the first round of equity funding. This new capital infusion will enable Nivara support its expansion plans to enhance its proprietary technology platform, extend its geographic presence into new markets, strengthen its distribution network, and develop innovative credit solutions.
“We believe the Indian affordable housing sector is poised for substantial growth and Nivara is at the forefront of this transformation. Having closely observed the 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,” True North’s partner Maninder Singh said in the statement.
Broadly, the housing finance industry has been bubbling with renewed investor activity and saw nearly a tenfold jump in primary fundraising in 2024, as even venture capitalists sought to diversify their portfolios with such assets perceived as relatively less risky.
Other deals over the last year include Vastu Housing Finance’s $100 million fundraising from Prosus and Vridhi Finserv Home Finance’s $37 million round by Norwest Venture Partners and Elevation Capital. Private equity firm Multiples Alternate Asset Management, which has also backed Vastu, invested in Shubham Housing Finance’s $47 million round alongside other investors.
Several factors such as rising housing demand, ability of mortgage lenders to contain costs at crunch times and generate sustained returns along with more opportunities opening up beyond the metros have attracted investments to the sector.
Founded by C.V. Rao, Rohokale and Koticha in 2015, Nivara is focused on providing affordable housing finance to micro-entrepreneurs and informal salaried customers. Their ticket size for these loans typically ranges between ₹5 lakhs and ₹7.5 lakhs, a relatively underserved segment since most affordable housing finance have catered to a slightly higher ticket size of ₹9-10 lakhs.
The Bengaluru-based company operates in five states with a network of 68 branches in southern and western parts of India. It handles about ₹700 crore in assets under management and has delivered financial products and technology to meet the diverse needs of customers.
