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EQT Invests in Affordable Housing in India

Private equity firm EQT has announced its acquisition of a 100% stake in Indostar Home Finance, a wholly-owned subsidiary of IndoStar Capital Finance Limited, for INR 1,750 crore (USD 210 million). This acquisition signifies a strategic move by EQT to capitalize on the growing demand for affordable housing finance in India.

Boosting Growth and Digital Transformation in India

• EQT's investment is expected to fuel Indostar Home Finance's growth and digital transformation journey, enabling the company to expand its reach and impact across the country.
• The acquisition aligns with EQT's focus on investing in businesses that are driving positive social and economic change in India.
• This partnership allows Indostar Home Finance to leverage EQT's expertise in digital transformation and scaling operations, further enhancing its capabilities in the affordable housing sector.

Indostar Home Finance: A Leader in Affordable Housing in India

• Founded in 2011, Indostar Home Finance has been providing affordable home financing solutions to customers in Tier II, Tier III, and Tier IV cities across India.
• With assets under management exceeding INR 2,400 crore, the company has demonstrated a strong track record of growth and impact in the affordable housing segment.
• Indostar Home Finance's network of over 130 branches across nine states has solidified its position as a leader in the segment, particularly in South India.
• The company's commitment to providing competitive pricing and transparent terms has made it a trusted partner for low-income homeowners and small businesses seeking access to housing finance.

EQT's Investment in Indostar Home Finance

EQT plans to invest INR 500 crore of primary capital into Indostar Home Finance through its MMG fund. This strategic investment will support Indostar Home Finance's growth plans and its expansion into new markets across India.

IndoStar Capital Finance: Focus on Vehicle Financing and Small Business Loans in India

While Indostar Home Finance is being acquired by EQT, its parent company, IndoStar Capital Finance, will focus on its core businesses: vehicle financing and small business loans.

• IndoStar Capital Finance has carved out a niche in providing tailored financing solutions to retail customers, supporting livelihood opportunities with competitive pricing and transparent terms.

EQT's Strategy in India

This acquisition highlights EQT's commitment to investing in businesses that are driving positive change in India, particularly in the affordable housing segment. EQT's expertise in digital transformation and scaling operations is expected to be instrumental in accelerating Indostar Home Finance's growth and impact across India.

• EQT aims to leverage its global experience and resources to support Indostar Home Finance's expansion and digital transformation, enabling it to reach a wider customer base in India.