InvestorQ : Why has Warburg Pincus taken a stake in Home First?
Arya Nanda made post

Why has Warburg Pincus taken a stake in Home First?

Answer
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Anjana Aiyar answered.
3 weeks ago


Home First Finance focuses on low cost housing and it has just got a major investment from Warburg Pincus, one of the world’s most respected PE investor. Warburg Pincus will invest Rs.700 crore into Home First Finance via its affiliate, Orange Clove Investments BV.

With this deal, Warburg Pincus joins existing PE shareholders like True North and Bessemer Venture Partners who have already invested in Home First. The company provides home loans to low and middle-income segments looking to build or buy their first homes.

The customer base of Home Trust is salaried employees of small firms or those who are self-employed, running small businesses like MSMEs. Home First enjoys strong underwriting capabilities for its new-to-credit customer base; largely through the use of smart technology.

Home First is 10 years old and has already established its presence in 60 districts across 11 states plus one Union territory. The lender has significant presence in the urbanized regions of Gujarat, Maharashtra, Karnataka and Tamil Nadu and has an AUM of Rs.3618 crore.