Warburg Pincus invests INR 700 cr to acquire equity stake in True North-backed Home First Finance

Mumbai: Home First Finance Company India Ltd (“Home First”), one of india’s leading affordable housing finance companies announced today that it has entered into definitive agreements with Orange Clove Investments BV an affiliate of Warburg Pincus LLC (“Warburg Pincus”), a leading global private equity firm focused on growth investing for an investment of approximately INR 700 crore through a combination of primary fund raise 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 to more than 50,000 customers in 60 districts, across 11 states and a union territory. Coming at a time when the whole world is navigating an unprecedented crisis, this transaction is a huge vote of confidence for the affordable housing segment in general and more specifically for the performance of Home First in the face of the crisis.

Divya Sehgal, Partner, True North said, “Home First is one of the fastest growing affordable housing finance companies in India and has built strong underwriting capabilities for its new-to-credit customer base. We are 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.”

Narendra Ostawal, Managing Director, Warburg Pincus 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.”

“Warburg Pincus’ investment in Home First at this juncture, is an acknowledgement of Home First’s inherent strengths. 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.” said Manoj Viswanathan, Chief Executive Officer, Home First.

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