Non-Banking Financial Company IIFL Finance Limited said that its wholly owned subsidiary IIFL Home Finance Limited, an affordable housing finance company, has entered into definitive agreements for raising ₹2,200 Cr of primary capital for a 20% stake from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
Speaking on the occasion, Nirmal Jain, Founder, IIFL Group said, “We are delighted to partner with ADIA who bring to the table long term commitment and rich experience of supporting growing businesses. The investment recognizes IIFL Home Finance’s position as one of India’s largest providers of affordable housing loans and how well it is placed to continue to target the large, resilient housing finance market.”
Established in 2006 as a wholly owned subsidiary of IIFL Finance, IIFL Home Finance has created assets under management of ₹23,617 Cr as of March 31, 2022, with an active customer base of 168,000 across 16 states and 2 union territories with over 200 branches backed by over 3,200 employees, the statement said.
“IIFL Home Finance has already established itself as one of India’s leading technology-enabled mortgage lenders. This investment aims to support the company for its next phase of growth, as it meets the significant demand in India’s large, under-served and fast-growing affordable housing finance market”, said Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA.
Speaking on the occasion, Monu Ratra, CEO, IIFL Home Finance said, “IIFL Home Finance has built a strong foundation and is at an inflection point as it leverages new strategies such as co-lending, foraying into more granular products and expanding reach across Tier II and Tier III regions. We welcome our new partners and look forward to working with them in the next phase.”
Avendus Capital & IIFL Securities were the financial advisors to IIFL Home Finance for this transaction.
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