Weaver services acquires Capital India Home Loans for Rs 267 crore

Weaver Services has signed definitive agreements to acquire 100% equity of Capital India Home Loans Ltd for a total consideration of Rs 267 crore ($31.7 million).

The strategic acquisition aims to strengthen Weaver’s presence in the affordable housing finance sector, particularly catering to underserved markets in India.

The transaction is subject to regulatory approvals, and both companies have expressed confidence in the deal’s positive impact on the housing finance landscape.

Focus on affordable housing

With this acquisition, Weaver Services intends to introduce innovative financial products, specifically targeting self-employed individuals and those in the unorganized sector, particularly in Tier 2 and Tier 3 towns.

The company’s primary focus will be on enhancing financial inclusion, especially for women borrowers, by offering affordable and accessible home loan solutions.

The move is designed to meet the growing demand for housing finance in smaller towns and cities, where formal credit channels are often limited.

Leadership and strategic vision

Weaver Services is led by experienced finance professionals, many of whom have previously held leadership positions at HDFC.

The team, led by Satrajit Bhattacharya, former head of investments and mergers at HDFC, brings a wealth of experience to this new venture. 

While Bhattacharya will assume a non-executive role after the acquisition, he will continue to guide the company’s strategic direction.

Funding and expansion plans

To support the acquisition and fuel future growth, Weaver Services is in the process of raising up to Rs 800 crore from private equity funds, including Gaja Capital and Lok Capital.

This capital infusion will enable the company to expand its operations across India, launch new financial products, and enhance its technological and operational capabilities.

With these funds, Weaver Services aims to position itself as a major player in the affordable housing finance market.

Keki Mistry, former Vice Chairman and CEO of HDFC Limited, shared, “I am happy to see a team of former colleagues and partners unite to establish a housing finance company dedicated to addressing the needs of an underserved segment of society. This initiative will be pivotal in meeting the urgent housing requirements of lower-income and Economically Weaker Section (EWS) groups.”