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Arpwood Partners acquires majority stake in SEWA Grih Rin with Rs 680-Cr Investment

Arpwood Partners Fund I LLP announced the acquisition of a majority stake in SEWA Grih Rin Limited (Sitara), an affordable housing finance company. They invested Rs 680 crore as part of Sitara’s larger plan to raise Rs 705 crore, with more contributions from existing shareholders to support business growth.

This investment, awaiting approval from the Reserve Bank of India, is expected to greatly boost Sitara’s ability to help women achieve homeownership.

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

Founded in 2015, Sitara focuses on providing housing finance to underserved and low-income households, especially women in the informal sector. The company currently manages an AUM of Rs 1,200 crore and serves over 25,000 customers. With the new capital, Sitara aims to expand its reach and impact, targeting over 500,000 lives in the next five years.

This investment round also includes continued support from existing investors such as Abler Nordic, Oikocredit, RNT Associates, HDFC Bank, HDFC Life Insurance, Women’s World Banking Asset Management, and Omidyar Network.

An Arpwood Partners spokesperson expressed optimism about the partnership, stating, “We believe that lending to self-employed customers with informal incomes is a structurally attractive opportunity. We are privileged to be partnering with SEWA and RNT Associates to further build and grow Sitara in its focus segment. We will work with current shareholders to grow the franchise profitably, expand the distribution network, and invest in the team.”

Arpwood Partners Fund I LLP is renowned for investing in mid-market franchises, focusing on strategic clarity, empowered management teams, and operational excellence. Before this, Arpwood Partners promoted SBFC Finance Ltd and exited in May 2024.

DC Advisory India served as the exclusive advisor for the transaction, with Trilegal providing legal counsel to Sitara and its existing shareholders. Vertices Partners advised Abler Nordic and Oikocredit, while Anagram Partners advised Arpwood Partners.

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