Arpwood Partners gets majority stake in SEWA Grih Rin for Rs 680 crore

SEWA Grih Rin Limited (Sitara), an affordable housing finance company, has entered into an agreement with Arpwood Partners Fund I LLP (Arpwood Partners) and some existing shareholders to raise equity capital of Rs 705 crore.

Arpwood Partners has committed to invest Rs 680 crore and will acquire a majority stake in the company. The deal aims to finance Sitara's business growth. The agreement awaits approval from the Reserve Bank of India.

Who are the existing investors of Sitara?

The existing investors in Sitara include Abler Nordic, Oikocredit, RNT Associates (an investment entity sponsored by Ratan Tata), HDFC Bank, HDFC Life Insurance, Women’s World Banking Asset Management, and Omidyar Network India. These investors will continue to remain invested in the company alongside Arpwood Partners. 

What does Sitara Grih Rin do?

Founded in 2015, Sitara focuses on providing affordable housing finance to under-served and low-income households in urban and peri-urban areas. The company's mission emphasizes enabling property ownership for women in the informal sector.

The company operates through a network of 75 branches across nine states, including Delhi, Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Maharashtra, Gujarat, and Haryana.

It claims to have an Assets Under Management (AUM) of approximately Rs 1,200 crore and serves over 25,000 customers. 

Leadership comments

Renana Jhabvala, Chairwoman at Sitara, said, "The capital infusion by Arpwood Partners will help enhance the capacity of the company to support women in realizing their dream of owning a house of their own. Our unique operating model emphasizes assisting customers to formalize their collateral and helps in their social upliftment.”

She also thanked the existing investors and lending partners for their continued support, adding, “With this infusion from Arpwood Partners, we will redouble our efforts to touch 500,000+ lives in the next five years.”

DC Advisory India served as the exclusive advisor to the transaction. Trilegal provided legal advice to Sitara and some existing shareholders, while Vertices Partners acted as legal advisors to Abler Nordic and Oikocredit. Anagram Partners served as legal advisors to Arpwood Partners.