Avendus Capital Advises IIFI Home Finance on Investment of INR 2,200 cr From ADIA’S Wholly Owned Subsidiary

Leading Non-Banking Financial Company, IIFL Finance Limited, today said that its wholly owned subsidiary IIFL Home Finance Limited, one of India’s largest affordable housing finance companies with assets under management of INR 23,617 crore as of March 31, 2022, has entered into definitive agreements for raising INR 2,200 crore of primary capital for a 20% stake from a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA). The deal completion is subject to regulatory approvals

This would be one of the largest equity investments in the affordable housing finance segment in India by a financial investor. 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.

Deal Value

USD 283 mn (INR 2,200 cr)

Service

Mergers & Acquisitions

Sector

Financial Institutions Group

Date

June 2022

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

Nirmal Jain

Founder, IIFL Group

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,

Hamad Shahwan

Al Dhaheri, Executive Director, Private Equities Department, ADIA

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.

Monu Ratra

CEO, IIFL Home Finance

We are privileged to be associated with one of the largest affordable housing finance players in what constitutes a landmark transaction in the space. The investment reinforces the resilience of the sector and the strong confidence investors have in a high-quality franchise like IIFL Home Finance. This partnership will further strengthen the company’s position in the space as it continues to scale new heights.

Anshul Agarwal

Managing Director & Head, Financial Institutions Group Investment Banking, Avendus Capital

About IIFL Finance

Established in 2006 as a wholly owned subsidiary of IIFL Finance, IIFL Home Finance has created assets under management of INR 23,617 crore 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 company offers small-ticket housing loans, loans against property and construction finance. It also actively supports the construction of green affordable buildings in the country in collaboration with housing developers and other experts through its proprietary ‘Kutumb’ platform in an effort to limit the carbon footprint and provide costefficient structures.