Nivara Home Finance Bags $10 Mn From Baring PE India

Housing finance startup Nivara Home Finance has raised $10 Mn (INR 82.4 Cr) in a funding round led by investment firm Baring Private Equity India. 

In a statement, the startup said it will use the fresh proceeds to drive its expansion and growth plans.

Founded in 2015 by CV Rao, Sunil Rohokale and Monik Koticha, Nivara is a housing finance company that disburses small ticket housing loans in the range of INR 5 Lakh to INR 7.5 Lakh to micro-entrepreneurs and salaried professionals. 

“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,” said Nivara cofounder and CEO Rao.

Commenting on the fundraise, senior principal at Baring PE India Debanshi Basu 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 practises the management team, will propel the franchise for a long time to come.”

The startup currently operates in five states – Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra – via a network of 63 branches. It claims to have assets under management (AUM) to the tune of INR 500 Cr and gross non-performing assets (GNPAs) of 0.58% as of February 2024. 

The bootstrapped startup had not raised any external funding ahead of this funding round. Its promoters claim to have pumped INR 100 Cr into the company till date. It also claims to be profitable since its inception.

The company competes with the likes of startups such as Basic Home Loan and Housing.com-backed Easiloans, as well as legacy players such as Indiabulls Housing Finance, India Home Loan, among others. 

This comes close on the heels of another home loan startup, Vridhi Home Finance securing INR 150 Cr in a funding round led by Elevation Capital.

Overall, the housing finance segment in India continues to be highly underpenetrated and offers potential for growth. According to a Mordor Intelligence report, the homegrown home loan market was pegged at $300 Bn. As per Inc42, the Indian digital lending market is estimated to reach $1.3 Tn by 2030 from $270 Bn in 2022 at a CAGR of 22%.