Swedish Private Equity Giant Eyes Affordable Housing Boom with INR 30Bn AUM Platform

Swedish investment firm EQT is set to acquire Niwas Housing Finance Limited, formerly known as IndoStar Home Finance, in a deal valued at approximately INR 17.06 billion (around USD 210 million). Pending regulatory approvals from the Reserve Bank of India, the transaction is expected to close by late Q3 2025, marking EQT’s continued expansion into India’s burgeoning financial services market.

Founded in 2017, Niwas Housing Finance has rapidly built a portfolio of affordable mortgage products aimed at serving the country’s tier 2 to tier 4 cities. As of 31 March 2025, the company managed assets worth INR 30 billion (USD 359 million), supporting over 47,000 low-income homeowners and small businesses across nine states. This robust growth trajectory aligns with India’s broader push for financial inclusion and affordable housing.

Under the terms of the acquisition, EQT’s BPEA EQT Mid‑Market Growth Partnership will inject an additional INR 5 billion (USD 58 million) as growth capital into Niwas. These funds are earmarked for geographic expansion into underserved regions and for bolstering Niwas’s digital lending capabilities, including enhanced underwriting algorithms and customer-facing mobile platforms.

Industry analysts highlight that India’s affordable housing finance sector is on track for a compound annual growth rate of 25% through 2027, fueled by government initiatives like the Pradhan Mantri Awas Yojana and rising middle‑class aspirations. EQT’s play in this segment follows its successful investments in similar policy‑driven markets, leveraging both capital and operational expertise to drive scale.

For Niwas, the partnership promises access to EQT’s global network and governance framework. The firm’s strong capital adequacy ratio of nearly 50% and low non‑performing assets ratio provide a solid foundation for further growth. At the same time, regulatory risks and potential macroeconomic headwinds—including interest rate volatility—are factors both EQT and Niwas will need to navigate carefully.

As EQT moves to finalize the deal, market observers will watch closely how the partnership accelerates affordable mortgage penetration in India’s vast semi‑urban landscape. With housing demand expected to outpace supply significantly, Niwas’s platform, backed by EQT’s scale and strategic guidance, is well‑positioned to capitalize on one of the fastest‑growing segments in the global housing finance arena.