Bengaluru-based Nivara Home Finance Ltd, India, has secured ₹245 crore in its Series B funding round led by private equity firm True North. The fresh capital will aid Nivara in expanding its geographical presence, enhancing its proprietary technology, and strengthening its distribution network. Other investors in the round included Baring PE India and the company’s promoters.
Nivara Home Finance Ltd, a Bengaluru-based affordable housing finance company, has raised ₹245 crore in a Series B funding round led by private equity firm True North. The funding round also saw participation from Baring PE India and Nivara’s promoters, Sunil Rohokale and Monik Koticha.
According to Nivara, True North contributed ₹170 crore, while Baring PE India invested ₹50 crore, and the promoters infused ₹25 crore. The company did not disclose its latest valuation.
This funding comes less than a year after Nivara secured ₹83 crore in a Series A round led by Baring PE India in March 2024 at a valuation of approximately $54.6 million.
Growth and Expansion Plans
Nivara plans to utilize the newly raised capital to:
- Expand its geographic footprint into new markets
- Strengthen its distribution network
- Enhance its proprietary technology platform
- Develop innovative credit solutions for underserved customers
Investor Sentiment on Housing Finance Sector
True North’s partner Maninder Singh stated that the Indian affordable housing finance sector is experiencing substantial growth, with Nivara well-positioned to capture market share due to its innovative approach and customer-focused services.
The housing finance sector in India has seen increased investor interest, with primary fundraising activity jumping nearly tenfold in 2024. Other major investments in the sector include:
- Vastu Housing Finance raised $100 million from Prosus
- Vridhi Finserv Home Finance secured $37 million from Norwest Venture Partners and Elevation Capital
- Shubham Housing Finance received $47 million from Multiples Alternate Asset Management and other investors
About Nivara Home Finance
Founded in 2015 by C.V. Rao, Sunil Rohokale, and Monik Koticha, Nivara Home Finance focuses on providing affordable housing finance to micro-entrepreneurs and informal salaried individuals. The company primarily caters to a loan segment of ₹5 lakh to ₹7.5 lakh, addressing a market gap where most lenders focus on higher ticket sizes.
The Bengaluru-headquartered company operates across five states, with 68 branches in southern and western India. Nivara manages an asset portfolio of approximately ₹700 crore and continues to leverage financial products and technology to meet the diverse needs of its customers.
Industry Outlook
With rising demand for affordable housing, cost-efficient mortgage lending, and expanding opportunities beyond metro cities, the housing finance sector in India remains an attractive investment option for both private equity firms and venture capitalists.
