Get All Access for $5/mo

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.

By Entrepreneur Staff

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Hemant Sharma, Managing Director in the EQT Private Capital Asia advisory team|LinkedIn

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."

Entrepreneur Staff

Entrepreneur Staff

Editor

For more than 30 years, Entrepreneur has set the course for success for millions of entrepreneurs and small business owners. We'll teach you the secrets of the winners and give you exactly what you need to lay the groundwork for success.
News and Trends

Former Cleartrip CEO Ayyappan R Eyes Quick Commerce with FirstClub

After stepping down as Cleartrip's CEO earlier this year, Ayyappan brings his expertise from leading positions at Flipkart, including his role as chief business officer at Myntra.

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

News and Trends

AWE Funds to Scale Women-Led ClimateTech Initiatives with CGEF Grant

The grant will empower AWE Funds to expand initiatives, invest in women-led climate companies, enhance accelerator programs, and launch a fellowship nurturing young women professionals in climate and sustainability.

Growth Strategies

Amazon To Improve Services In Tier II, III Cities: Samir Kumar, Country Manager

The bigger share of our business is coming from Tier II,III and beyond, says Samir Kumar, country manager, Amazon India

News and Trends

India's Data Center Capacity to Reach 2,070 MW by End of 2025: CBRE

Cumulative investment commitments in the data center sector in India to cross USD 100 billion by 2027. Mumbai, Chennai, and Delhi-NCR to lead data center supply addition