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Sweden-based EQT has completed its INR 1,750 crore (USD 210 million) acquisition of Niwas Housing Finance, formerly Indostar Home Finance. EQT will also inject INR 500 crore in growth capital to aid Niwas's expansion across India and enhance its digital infrastructure. Focused on affordable housing loans in tier 2-4 cities, Niwas has supported over 47,000 low-income homeowners and manages assets worth over INR 3,000 crore. EQT aims to scale the company to assist 1.5 lakh families by 2029. This move deepens EQT's presence in India's retail lending sector, following its investment in Credila, and marks a new chapter in Niwas's growth journey.
Sweden-based investment firm EQT today announced the successful completion of its acquisition of Niwas Housing Finance Limited, previously known as Indostar Home Finance. This transaction, valued at INR 1,750 crore (approximately USD 210 million), marks a significant step in EQT's strategic expansion within India's financial services sector. Advertisement
Following the acquisition, EQT is set to infuse INR 500 crore (approximately USD 58 million) as growth capital into Niwas Housing Finance. This investment is earmarked to support the company's geographic expansion across India and to bolster its digital capabilities, enhancing its operational efficiency and customer reach.
Niwas Housing Finance, founded in 2017, specializes in providing affordable mortgages to retail customers primarily in tier 2 to tier 4 cities across India. Since its inception, the company has played a crucial role in empowering over 47,000 low-income homeowners and small businesses to achieve their homeownership dreams. As of March 31, 2025, Niwas reported an impressive Asset Under Management (AUM) exceeding INR 3,000 crore, comprising granular, retail, and secured loans. Its mission is to assist 150,000 families in realizing home ownership by 2029.
Hemant Sharma, a Partner in the EQT Private Capital Asia advisory team, explained that India's retail lending sector continues to offer exciting opportunities and is a core investment theme for EQT in the country. He mentioned that with the acquisition of Niwas, EQT was deepening its commitment to the sector, building on a previous investment in the education finance space through Credila last year.
Shreejit Menon, CEO of Niwas Housing Finance, expressed excitement about partnering with EQT, citing their strong track record in scaling financial services businesses and their active ownership approach. He noted that EQT's focus on performance, digital enablement, sustainability, and governance aligns perfectly with Niwas's vision of building a differentiated housing finance company.
K.R. Kamath, Chairperson of the newly constituted Board of Niwas Housing Finance, also added that the new board's collective experience would provide valuable strategic guidance, ensuring Niwas scales responsibly with customer-centricity at its core.
The initial agreement for EQT to acquire a 100 percent stake in Niwas Housing Finance (then Indostar Home Finance) was announced last year in September. This latest completion marks a significant step for both entities as Niwas embarks on its renewed journey of expansion and digital transformation.
Source- PTI
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