Affordable housing finance player Weaver Services Private Ltd has announced acquiring Capital India Home Loans Pvt Ltd (CIHL) for ₹267 crore. This would help push the credentials of Weaver Services in lender capabilities and expand their market reach.
Founded by former HDFC Ltd executives, such as Satrajit Bhattacharya, the company looks forward to leveraging its leadership’s broad experience in housing finance. To support the acquisition and further expansion, Weaver Services is raising up to ₹800 crore from private equity investors like Gaja Capital and Lok Capital. This capital will not only support acquisition but also operational expansion.
The acquisition will still have to receive regulatory clearances, which is the norm in this space. Bhattacharya was investment head and M&A head for HDFC and will take on a non-executive position at Weaver Services post-deal with AION. Speaking with Mint, Bhattacharya elaborated on the dual-purpose for which capital is being raised: “The capital would be utilized for acquisition finance as well as growth.” However, in the same space, we are also looking at more acquisitions for which we’ll be raising even more capital.
Tier 2 and Tier 3 towns have been identified as potential markets for the launch of innovative home loan products designed specifically for women borrowers and self-employed customers from the unorganized sector, which perhaps fills in a gap that the company believes will shape the vision to address the unique financial needs of the under-served demographics.
Capital India Home Loans is the subsidiary of Capital India Finance Ltd, or CIFL, a non-deposit taking non-banking financial company primarily involved in property-backed lending. CIFL is a part of Capital India Corp Pvt Ltd, an entity promoted by Sumit K. Narvar, who also chairs the Noida-based real estate firm Trident Realty. The diversified portfolio of Capital India Finance is technically enabled to support cross-border remittances through RemitX, fintech solutions using RapiPay, and education loan services that are formed with Credenc.
CIHL, as of March 31, 2024, reported a standalone loan portfolio of ₹388.68 crore compared with ₹348.06 crore the previous year with secured loans forming about 94% of this portfolio. The company has a total 31 branches across ten states which further cements its position in the housing finance market.
