NEW DELHI: Edelweiss Financial Services Ltd and Carlyle Group announced on Tuesday that the US-based investment firm will acquire a strategic majority stake in Nido Home Finance, a fully-owned subsidiary of Edelweiss.
The transaction involves investment funds associated with Carlyle Asia Partners (CAP) investing Rs 2,100 crore (approximately USD 230 million). This includes acquiring a 45% stake in Nido from Edelweiss through a secondary purchase and a primary equity capital infusion of Rs 1,500 crore (approximately USD 165 million) into the housing finance firm.
Aditya Puri, Senior Advisor to Carlyle in Asia and former CEO and MD of HDFC Bank, will also invest, emphasizing the strategic significance of this investment, as stated by Edelweiss Financial Services Ltd.
Founded in 2010, Nido is among India’s foremost housing finance companies, offering home loan solutions to customers in affordable housing and mass-market segments.
Nido has a substantial presence nationwide, operating a vast network of branches that serve over 800 talukas (sub-districts) across India and currently managing an AUM of Rs 4,804 crore.
Carlyle’s investment underscores its ongoing commitment to India’s rapidly expanding housing finance sector, leveraging over 20 years of expertise and a successful track record in India’s financial services, including businesses like PNB Housing Finance Limited (PNBHF) and Housing Development Finance Corporation (HDFC).
The deal aims to create mutual benefits for all parties by injecting additional capital and operational know-how to enhance service in the affordable housing segment—especially in rural and semi-urban markets, a priority for the Indian government.
Housing finance is a pivotal element of India’s growth, buoyed by structural demand, governmental policy support, and a more comprehensive formal credit framework.
This partnership is poised to fulfill Edelweiss’s objective of unlocking value in its business while supporting Nido’s growth with fresh capital infusion.
Rashesh Shah, Chairman & MD of Edelweiss, remarked, “Carlyle’s investment in Nido is a significant milestone, introducing a high-quality, long-term partner to accelerate Nido’s next growth phase.” He highlighted that as India’s housing finance sector sees robust structural demand supported by increased affordability and better access to formal credit, Nido is well-positioned to leverage this opportunity.
Carlyle Partner and Asia Financial Services Sector Lead Sunil Kaul added, “We look forward to utilizing our extensive experience in financial services and housing finance to help Nido scale operations and cater to the growing needs of affordable housing, particularly in rural and semi-urban markets.”
