Abu Dhabi's ADIA invests Rs 2,200 cr in IIFL Home Finance for 20% stake

Leading NBFC IIFL Finance Limited on Thursday said that its wholly-owned subsidiary, IIFL Home Finance Limited, has entered into definitive agreements for raising Rs 2,200 crore for a 20% stake from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA). The deal completion is subject to regulatory approvals.

IIFL Home Finance is one of India’s largest affordable housing finance companies with assets under management of Rs 23,617 crore as of March 31, 2022.

This would be one of the largest equity investments in the affordable housing finance segment in India by a financial investor. Avendus Capital advised IIFL Home Finance on this transaction. "Backed by a technology backbone enabling 100% digital onboarding for home loans, robust credit appraisal and collection systems, IIFL Home Finance Limited proposes to use the additional capital to continue its granular expansion strategy into new markets to address the significant and growing demand for housing loans," said IIFL Finance in a stock exchange filing.

Speaking on the occasion, Nirmal Jain, Founder, IIFL Group said, “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, IIFL Home Finance has 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 company offers small-ticket housing loans, loans against property and construction finance.

“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.”