Swedish investment major EQT announced that it has completed its acquisition of Niwas Housing Finance Limited, an affordable housing finance player in India formerly known as IndoStar Home Finance, from IndoStar Capital Finance Limited.
Financial terms of the acquisition, which was executed through EQT’s BPEA EQT Mid-Market Growth Partnership Fund, were not disclosed.
As part of the transaction, EQT said it will invest Rs 500 crore ($58 million) as growth capital to support Niwas’ geographic expansion and enhance its digital capabilities.
Founded in 2017, Niwas provides affordable housing loans and loans against property to middle-income and underserved customers in India’s tier 2 to tier 4 cities.
It manages over $359 million in assets and has supported more than 47,000 low-income homeowners and small businesses. Niwas operates a network of over 140 branches across nine Indian states.
“With EQT’s support and global expertise along with the guidance of incoming board members, we are confident of accomplishing our mission to help 150,000 families realise their dreams of home ownership by 2029,” said Niwas CEO Shreejit Menon.
EQT said the acquisition aligns with its focus on India’s expanding middle class and rising demand for accessible financial solutions.
The country’s Rs 30 lakh crore-plus housing finance market is seen as a resilient and growing opportunity driven by urbanisation and government support for affordable housing.
“India’s retail lending sector continues to offer exciting opportunities and is a key investment theme for EQT in India,” said Hemant Sharma, a partner in the EQT Private Capital Asia advisory team.
The acquisition comes as EQT received commitments totalling $11.4 billion for its new Asia-focused buyout fund, with the fundraising expected to end before year-end and hit an upper limit or hard cap of $14.5 billion in 2026.
EQT activated its ninth regional private equity fund, BPEA Private Equity Fund IX, managed by EQT Private Capital Asia, on March 1, 2025, and held its first close in April.
