EQT Acquires 100% Stake in Indostar Home Finance for INR 1,750 Cr to Boost Growth EQT plans to invest INR 500 crore of primary capital into Indostar Home Finance via its MMG fund to fuel its next growth phase.
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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).
The deal is expected to significantly boost Indostar Home Finance's growth and digital transformation, while IndoStar Capital focuses on its core strengths of vehicle financing and small business loans.
"We are excited to embark on this new journey with EQT, who shares our vision and whose partnership will significantly help advance our mission of delivering affordable housing finance solutions across India. We extend our thanks to IndoStar and its promoters for their unwavering support and commitment throughout the years," Shreejit Menon, CEO of IndoStar Home Finance, said.
Founded in 2011, IndoStar Capital Finance operates through two wholly-owned subsidiaries: IndoStar Home Finance Private Limited, which provides affordable home financing solutions, and IndoStar Asset Advisory Private Limited.
The parent company has carved out a niche in providing tailored financing solutions to retail customers in Tier II, Tier III, and Tier IV cities, helping them access livelihood opportunities with competitive pricing and transparent terms.
Indostar Home Finance has quickly scaled its operations, achieving assets under management of more than INR 2,400 crore. The company claims to have posted a 32% compounded annual growth rate over the past three years, catering to over 39,000 low-income homeowners and small businesses.
With a network of more than 130 branches across nine states, Indostar Home Finance has established itself as a leader in the affordable housing segment, particularly in South India, where it has demonstrated strong underwriting capabilities.
EQT plans to invest INR 500 crore of primary capital into Indostar Home Finance via its MMG fund to fuel its next growth phase.
Hemant Sharma, Managing Director in the EQT Private Capital Asia advisory team, said, "We see significant potential to expand Indostar's presence across India and drive its digital transformation. EQT looks forward to supporting the company in its next phase of growth."
