The Warburg Pincus investment will be a combination of primary fundraise and secondary sales by existing shareholders
The firm joins existing PE shareholders True North and Bessemer Venture Partners
Affordable housing loan provider Home First Finance Company India Ltd (HFFC) on Friday said it has entered into definitive agreements with Orange Clove Investments BV, an affiliate of American private equity investor Warburg Pincus, for an investment of Rs700 crore.
The Warburg investment will be a combination of primary fundraise and secondary sales by existing shareholders. Warburg Pincus joins existing PE shareholders True North and Bessemer Venture Partners.
HFFC provides home loans to customers from low- and middle-income segments, who are building or buying their first homes. The company’s customers are typically salaried customers who work in small firms or are self-employed, running small businesses.
“Home First is one of the fastest growing affordable housing finance companies in India and has built strong underwriting capabilities for its new-to-credit customer base. We are proud of the way the company has utilized technology to its advantage, adopting a digital first approach in navigating covid-19," said Divya Sehgal, Partner, True North.
HFFC was founded in 2010 and over the last 10 years has established its presence in 60 districts across 11 states and a Union territory with a significant presence in the urbanized regions of Gujarat, Maharashtra, Karnataka and Tamil Nadu. As of 31 March, HFFC had an AUM of Rs3,618 crore with gross non-performing assets at 0.87%.
“Warburg Pincus’ investment in Home First at this juncture, is an acknowledgement of Home First’s inherent strengths. Our strong focus on the salaried customer segment, our investments in technology and our deep belief in digital processes and payment mechanisms, have netted excellent dividends through multiple disruptive events," said Manoj Viswanathan, chief executive officer at Home First Finance.