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Centrum Capital Ltd has announced the divestment of its entire stake in its affordable housing finance business, Centrum Housing Finance Ltd (CHFL), to new-age lender Weaver Services for INR 430 crore. The sale, which is subject to regulatory and shareholder approvals, is a strategic move for Centrum to streamline its operations and focus on its core businesses. For Weaver Services, an entity backed by prominent investors like Premji Invest, Lightspeed Ventures, and Gaja Capital, the acquisition provides a crucial entry point into India's booming affordable housing finance market.
In a move aimed at streamlining its business portfolio, Centrum Capital Ltd recently announced that it has signed an agreement to sell its affordable housing finance arm, Centrum Housing Finance Ltd (CHFL), to Weaver Services for a total consideration of INR 430 crore. The transaction has received approval from Centrum?s board and is now subject to final clearances from shareholders and various regulatory bodies. Advertisement
As of June 30, 2025, CHFL operates with an asset under management (AUM) of INR 1,640 crore. With a network of 100 offices, it has been servicing a base of over 18,000 customers by offering a range of loan products, including home loans, loans for self-construction, and loans against property. The company has seen sustained and profitable growth since its inception.
The divestiture is part of a strategic consolidation by the Centrum Group, which seeks to sharpen its focus on its core wealth management and institutional businesses. Conversely, the acquisition is a pivotal move for Weaver Services, a new-age lender backed by prominent investors such as Premji Invest, Lightspeed Ventures, and Gaja Capital. The company is strategically positioned to leverage CHFL's established network and customer base to rapidly scale its operations within a high-growth sector.
The Indian affordable housing finance sector continues to attract strong investor interest due to several key factors, including government initiatives like the "Housing for All" mission and a large, underserved market in Tier-2 and Tier-3 cities. This underlying demand provides a strong foundation for lenders looking to expand their footprint in a promising market.
Source: PTI
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