Warburg Pincus picks stake worth $95m in India’s Home First Finance

Photo: Reuters

US private equity major Warburg Pincus, through its affiliate Orange Clove Investments BV, has entered into an agreement to invest about $95 million (Rs 700 crore) for an equity stake in Mumbai-based Home First Finance Company India Ltd (HFFC).

In a statement on Friday, affordable housing finance company HFFC said that it has raised the aforesaid amount through a combination of primary fund raising and secondary sales by existing shareholders.

“Our strong focus on the salaried customer segment, our investments in technology and our deep belief in digital processes and payment mechanisms, have netted excellent dividends through multiple disruptive events. True North has been a strong partner over the last few years and has supported the company in its business in tight market conditions. We look forward to partnering with our shareholders and offering industry-leading solutions to our customers,” Manoj Viswanathan, chief executive officer, HFFC said.

Founded in 2010, HFFC provides home loans to customers from low- and middle-income segments, who are building or buying their first homes. Over the last 10 years, the company claims to have sanctioned home loans to more than 50,000 customers in 60 districts, across 11 states and a union territory.

As on 31 March 2020, HFFC has an AUM of Rs 3,618 crore.

The company also counts private equity firm True North Capital, and Bessemer Ventures among its backers. True North Capital, along with co-investor GIC, owns about 74 per cent of HFFC while Bessemer Ventures owns a 16 per cent stake.

Warburg Pincus LLC is a leading global private equity firm focused on growth investing. Globally, the firm has more than $53 billion in private equity assets under management. Its other bets in the Indian financial services sector include IndiaFirst Bank, SBI General Insurance, CAMS, Avanse, AU Small Finance Bank, and Fusion Microfinance.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.