Global private equity firm Carlyle Group will acquire a strategic majority stake in its housing finance arm, Nido Home Finance, for Rs 2,100 crore, Edelweiss Financial Services Limited said on Tuesday. According to sources, Carlyle will acquire about 74% stake in Nido.
Under the transaction, investment funds affiliated with Carlyle Asia Partners will invest ₹2,100 crore (around $230 million) in Nido. This includes a secondary purchase of a 45% stake from Edelweiss and a primary equity infusion of ₹1,500 crore to fund future growth. Post-transaction, Edelweiss will continue to hold a significant minority stake in the business, it said.
Aditya Puri, senior advisor to Carlyle in Asia and former managing director and CEO of HDFC Bank, will also participate as an investor.
Founded in 2010, Nido is among India’s leading affordable housing finance companies, catering primarily to mass-market, rural and semi-urban borrowers. The company operates across more than 800 talukas through an extensive branch network and currently manages assets under management (AUM) of ₹4,804 crore.
The partnership aims to strengthen Nido’s capital base and operational capabilities to accelerate growth in the affordable housing segment, which continues to be a key policy priority for the Indian government, it said.
For Edelweiss, the deal aligns with its strategy of unlocking value from its subsidiaries while partnering with long-term global investors to scale businesses independently. The fresh capital infusion is expected to support Nido’s expansion, technology investments and governance frameworks.
Carlyle has previously backed housing finance players such as PNB Housing Finance and HDFC.
“Nido has built a strong, purpose-led franchise in affordable housing finance, and this partnership brings high-quality capital and expertise to scale the platform,” said Rashesh Shah, chairman and managing director of Edelweiss.
Sunil Kaul, partner and Asia financial services sector lead at Carlyle, said housing remained a critical national priority and the firm was excited to support Nido’s growth while strengthening governance and risk management for long-term sustainability.
Source: Economic Times