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Mumbai, NFA Post: US-based private equity firm Warburg Pincus LLC (“Warburg Pincus”), through it’s affiliate Orange Clove Investments BV, has entered into an agreement to invest about $95 Million (INR 700 Cr) in Home First Finance Company India Ltd (“Home First”).

The announcement came in from the leading global private equity firm focused on growth investing. The investment of approximately Rs 700 crore is a combination of primary fundraise and secondary sales by existing shareholders. Warburg Pincus joins existing marquee PE firm shareholders True North and Bessemer Venture Partners.

Home First is a technology driven, affordable housing finance company providing home loans to customers from low- and middle-income segments, who are building or buying their first homes. Over the last 10 years, Home First has sanctioned home loans across India to more than 50,000 customers in 60 districts, covering 11 states and 1 union territory. As of March 31, 2020, Home First had an AUM of $480 Mn (Rs 3618 crore) with a Net worth of $124 Mn (Rs 933 crore) and GNPA of 0.87%.

Vote of confidence

This investment is a huge vote of confidence for the Indian affordable housing segment in general and more specifically for the performance of Home First even in the face of this worldwide crisis.

Warburg Pincus Managing Director Narendra Ostawal said Home First has had a remarkable journey to become a leading affordable housing finance company in a relatively short span of 10 years.

“It is helmed by a very talented team and robust operating processes that continue to steer the company to do well through the pandemic and to leverage the growth potential of the affordable segment. Warburg Pincus looks forward to the partnership with True North and towards backing Manoj and the management team in its next phase of expansion,” said NWarburg Pincus Managing Director Narendra Ostawal.

Utilise technology

True North Partner Divya Sehgal said the firm is proud of the way the company has utilised technology to its advantage, adopting a digital first approach in navigating Covid-19.

“We welcome Warburg Pincus and look forward to partnering with them in the upcoming journey of Home First,” said True North Partner Divya Sehgal.

Commenting on the funding, Home First CEO Manoj Viswanathan said Home First is excited to partner with Warburg Pincus in this new phase of its journey.

“True North has been a great support as we scaled from a small to a mid-sized company. Our shared passion for tech, belief in sustainable growth and strong governance has seen us thrive through several disruptive events,” said Home First CEO Manoj Viswanathan.

Note:

CurrencyExchange rate as on March 31, 2020 (INR)Exchange rate as on October 1, 2020 (INR)
1 USD75.385973.3834

(Source for 1 USD: www.fbil.org and www.rbi.org.in). Rate as on October 1,2020 is considered since October 2 was a public holiday.

Home First Finance Company India Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to undertake an initial public offer of its equity shares and has filed a draft red herring prospectus dated November 28, 2019 (“DRHP“) with the Securities and Exchange Board of India on November 29, 2019.

The DRHP is available on the website of the SEBI at www.sebi.gov.in, the respective websites of the book running lead managers, i.e., Axis Capital Limited, Credit Suisse Securities (India) Private Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited at www.axiscapital.co.inhttps://www.creditsuisse.com/in/en/investmentbanking/regionalpresence/asiapacific/india/ipo.htmlwww.icicisecurities.com and http://investmentbank.kotak.com, respectively, the website of the National Stock Exchange of India Limited at www.nseindia.com and the website of BSE Limited at www.bseindia.com.

Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risk, see “Risk Factors” of the DRHP. Potential investors should not rely on the DRHP for any investment decision.

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