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Nuveen invests $30 million in Aviom India Housing Finance

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Kolkata: Nuveen, an American investment manager with over $1.1 trillion of assets under management, has invested $30 million in Aviom India Housing Finance for about 33% stake in the
mortgage lender through a combination of primary and secondary market deals.

The primary investment size is $20 million, an industry insider familiar with the matter said.

Existing investor Gojo & Co and Capital 4 Development Asia Fund Cooperatief UA partly offloaded their holdings in Aviom.

The deal was concluded Wednesday.

“The fundraise will propel the company’s loan book and expand its operations into newer geographies to meaningfully support low-income households,”

Aviom managing director Kajal Ilmi told ET.

She did not comment on the valuation of her company and the shareholding structure post infusion.

According to people in the know, post Nuveen’s investment, Ilmi’s holding in Aviom as the promoter has come down to 32% from 39% while Japan’s Gojo’s stake reduced to 19% from 39% and C4D’s holding fell to 3% from 7.4%. Sabre Partners AIF Trust’s current holding is 9% and the balance is held by other minority shareholders.

ET had on October 16, 2022, reported that Aviom was talking to investors for $30 million infusion.

The New Delhi-headquartered mortgage lender provides loans in the range of Rs 1 lakh to Rs 5 lakh for house construction, extension, and renovation. It has a network of 120 branches in 12 states, including Rajasthan, Madhya Pradesh, Uttar Pradesh, Punjab, Uttarakhand, Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, Maharashtra, Gujarat, and Haryana.

Aviom has disrupted micro-mortgage lending in India by catering to a hitherto underserved segment, said Stephen Lee, senior director and Asia head of Nuveen’s private equity impact investing team.

“Nuveen seeks out innovative companies with transformative business models that solve real-world problems,” Lee said.

Ilmi said the equity infusion would help Aviom extend financial assistance to over 60,000 families additionally in FY24 by disbursing around Rs 1,200 crore.

“The new equity investment would propel Aviom to grow 6x by 2026,” she said.

“Over the next six months, Aviom looks to increase its monthly disbursement to Rs 150 crore and will also add 50 more branches to its existing network.”

The lender has Rs 1,050 crore of assets under management at present, and a live customer base of around 50,000. It is also in the process of mobilising Rs 1,200 crore of debt.

“We are in advanced stage of discussions with HDFC Bank, State Bank of India, DFC US, Blue Orchard, IIX Singapore fund, (and) Japanese Asean Women Empowerment Fund for debt lines,” Ilmi said.