Arpwood Partners invests $81mn in Housing Financer Sitara
The investment is aimed at financing business growth and also results in the two parties now entering an agreement where Arpwood enjoys a majority stake at Sitara.
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Sewa Grih Rin Ltd (Sitara), an affordable housing loan provider has bagged INR 680 Crore ($81 Million) in equity capital from Arpwood Partners, a private equity firm.
The investment is aimed at financing business growth and also results in the two parties now entering an agreement where Arpwood enjoys a majority stake at Sitara. The likes of Abler Nordic, Oiko Credit, RNT Associates, HDFC Bank, HDFC Life Insurance, Women’s World Banking Asset Management, and Omidyar Network are set to continue being stakeholders in the company.
Sitara provides affordable housing finance solutions that cater to low-income households in urban and surrounding areas, a demographic that the company considers under-served. It started in 2015 and currently has over INR 1200 Crors in Assets Under Management (AUM) and handles over 25000 customers.
India is experiencing a shortage of approximately 10-12 million urban housing units according to Sitara and 96% of the shortage is attributed to the low-economy segment. The company’s running model and the investment brought in aims to reduce the numbers and specially cater to the informal workers with a unique focus on the women in this sector.
DC Advisory India assumed the role of advisor for this transaction and the deal is subject to approval by the Reserve Bank of India.
Sewa Grih Rin Ltd (Sitara), an affordable housing loan provider has bagged INR 680 Crore ($81 Million) in equity capital from Arpwood Partners, a private equity firm.
The investment is aimed at financing business growth and also results in the two parties now entering an agreement where Arpwood enjoys a majority stake at Sitara. The likes of Abler Nordic, Oiko Credit, RNT Associates, HDFC Bank, HDFC Life Insurance, Women’s World Banking Asset Management, and Omidyar Network are set to continue being stakeholders in the company.
Sitara provides affordable housing finance solutions that cater to low-income households in urban and surrounding areas, a demographic that the company considers under-served. It started in 2015 and currently has over INR 1200 Crors in Assets Under Management (AUM) and handles over 25000 customers.
India is experiencing a shortage of approximately 10-12 million urban housing units according to Sitara and 96% of the shortage is attributed to the low-economy segment. The company’s running model and the investment brought in aims to reduce the numbers and specially cater to the informal workers with a unique focus on the women in this sector.
DC Advisory India assumed the role of advisor for this transaction and the deal is subject to approval by the Reserve Bank of India.
