Edelweiss Financial Services Limited announced it will bring in The Carlyle Group as a strategic majority investor in Nido Home Finance Limited, the housing finance business that is currently a wholly owned subsidiary of Edelweiss.
Under the proposed transaction, investment funds affiliated with Carlyle will invest INR 2,100 Cr (approximately USD 230m) in Nido. The investment will include a secondary purchase of a 45% stake in Nido from Edelweiss, as well as a primary equity capital infusion of INR 1,500 Cr (approximately $165 million) into Nido to support growth.
Founded in 2010, Nido provides home loan solutions across India’s affordable housing and mass-market segments. The company operates a nationwide branch network serving more than 800 talukas and manages an AUM of INR 4,804 Cr (approximately $530 million).
Edelweiss and Carlyle positioned the partnership to add capital and operating expertise to expand Nido’s reach in rural and semi-urban markets, where affordable housing remains a key government priority. The companies also said the transaction is intended to support Nido’s next phase of scaling while aligning with Edelweiss’s objective of unlocking value across its businesses.
Carlyle said the investment builds on its prior experience in India’s financial services and housing finance sectors and noted that Aditya Puri, a senior advisor to Carlyle in Asia and former CEO and managing director of HDFC Bank, will also participate as an investor.
Support: The deal remains subject to regulatory approvals, including from the Reserve Bank of India, National Housing Bank, and the Competition Commission of India, as well as other customary conditions precedent. AZB & Partners acted as legal advisors to Edelweiss, and Trilegal acted as legal advisor to Carlyle.
KEY QUOTES
“The investment by Carlyle in Nido is a key milestone and brings in a high-quality, long-term partner to accelerate Nido’s next phase of growth. At a time when India’s housing finance sector is witnessing strong structural demand, supported by rising affordability and deeper access to formal credit, Nido is well-placed to participate meaningfully in this opportunity. I have deep respect for the financial services franchise that Carlyle has built over many years in India and am very excited that they will be partners to help Nido in its next stage of scale-up. Nido has built a strong, purpose-led franchise in affordable housing finance, and I am confident that this combination of strong leadership and capital will help accelerate expansion and create enduring value for all stakeholders.”
Rashesh Shah, Chairman & MD, Edelweiss
“We are thrilled to partner with Edelweiss to support the next phase of Nido’s growth journey. Housing remains a critical national priority for India, and we have strong conviction in the growth potential of the housing finance industry. We are excited to build on our extensive experience in financial services and housing finance to help Nido scale its operations and serve the expanding needs of affordable housing segments in the rural and semi-urban markets. Additionally, we look forward to leveraging our operational experience to support Nido in strengthening its governance and risk management frameworks for long-term sustainable growth and success.”
Sunil Kaul, Partner And Asia Financial Services Sector Lead, Carlyle
