Nivara Home Finance, a Bengaluru-based affordable housing loan provider, has raised ₹245 crore (approximately $28 million) in a Series B funding round. The round was led by private equity firm True North, with participation from existing investor Baring Private Equity India and the company's promoters, Sunil Rohokale and Monik Koticha.
Breakdown of Investments
- True North Fund VII: Invested ₹170 crore.
- Baring Private Equity India: Contributed ₹50 crore, following a previous investment of ₹85 crore in Nivara's Series A round in March 2024.
- Promoters (Sunil Rohokale and Monik Koticha): Invested ₹25 crore.
Utilization of Funds
The newly raised capital is earmarked for:
- Geographic Expansion: Extending Nivara's presence into new markets to reach a broader customer base.
- Distribution Network Enhancement: Strengthening the company's distribution channels to improve service delivery.
- Innovative Credit Solutions: Developing new credit products tailored to the needs of underserved communities in India's informal housing sector.
Management's Perspective
C.V. Rao, Managing Director and CEO of Nivara Home Finance, expressed optimism about the company's growth trajectory, stating that the Series B funding provides the necessary resources to expand into new geographies and serve a larger customer base.
Company Background
Established in 2015, Nivara Home Finance focuses on providing affordable housing loans, particularly targeting underserved communities. The company aims to promote inclusive financial growth by offering tailored financial solutions to individuals in the informal housing sector.
Our Opinion on the News
Nivara Home Finance's successful Series B funding round underscores the growing investor confidence in India's affordable housing finance sector. The strategic investments from prominent private equity firms and promoters are poised to accelerate Nivara's expansion plans and enhance its product offerings. This development aligns with the broader goal of financial inclusion, addressing the housing needs of underserved communities and contributing to the nation's economic growth.