Nivara Home Finance raises $10 million from Baring Private Equity India

Bengaluru, 5 April: Bengaluru-headquartered Nivara Home Finance has raised $10 million from Baring Private Equity India, the company said in a press release.

The proceeds from the funding round will be used to drive the growth and expansion of the company.

Nivara, which was founded in 2015, is focused on providing affordable housing finance to micro-entrepreneurs and salaried customers. The ticket size for these housing loans usually ranges between Rs 5 lakh- Rs 7.5 lakh. This segment has been relatively an underserved segment since most affordable housing finance peers cater to a ticket size of Rs 9-10 lakh or higher, the company said.

Currently, Nivara serves customers across five states including Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra, through its network of 63 branches. The company has an AUM (asset under management) of Rs 500 crore and has gross NPA (non-performing assets) of 0.58 per cent by the end of February 2024.

“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 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,” CV Rao, MD & CEO of Nivara said.

Commenting on the development, Debanshi Basu, Senior Principal at Baring Private Equity India, said, “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 the management team, will propel the franchise for a long time to come.”