Warburg Pincus invests Rs 700 cr to acquire stake in Home First Finance

Affordable housing financier Home First Finance said it has entered into definitive agreements with an affiliate of global private equity firm Warburg Pincus LLC for an investment of Rs 700 cr

Affordable housing financier Home First Finance said on Friday it has entered into definitive agreements with an affiliate of global private equity firm Warburg Pincus LLC for an investment of Rs 700 crore.

The investment by Orange Clove Investments BV will be through a combination of primary fund raise and secondary sales by existing shareholders. Warburg Pincus joins existing marquee private equity firm shareholders True North and Bessemer Venture Partners.

Home First is a technology driven, affordable housing finance company providing home loans to customers from low- and middle-income segments who are building or buying their first homes.

Over the last 10 years, Home First has sanctioned home loans to more than 50,000 customers in 60 districts across 11 States and a Union Territory.

The company said the transaction is a huge vote of confidence for the affordable housing segment in general and coming at a time when the whole world is navigating an unprecedented COVID-19 pandemic crisis.

Narendra Ostawal, Managing Director of Warburg Pincus said Home First has had a remarkable journey to become a leading affordable housing finance company in a relatively short span of 10 years.

"It is helmed by a very talented team and robust operating processes that continue to steer the company to do well through the pandemic and to leverage the growth potential of the affordable segment," he said in a statement.

As of March 31, Home First had assets under management of Rs 3,618 crore with a net worth of Rs 933 crore and gross non-performing assets of 0.87 per cent. It deploys proprietary machine learning and customer scoring models for underwriting and delivers quick turnaround times to its customers. New York-based Warburg Pincus LLC is a leading global private equity firm with more than 53 billion dollars in private equity assets under management. Its active portfolio of more than 185 companies is highly diversified by stage, sector and geography.