Carlyle Group Inc. is in discussions to acquire a majority stake in Nido Home Finance Ltd., a Mumbai-based Indian home mortgage firm owned by Edelweiss Financial Services Ltd. The potential deal, valued at an initial funding of $300 million, would mark Carlyle’s latest investment in India’s financial services sector. Negotiations are ongoing, and a deal has not been finalized.
If successful, Carlyle would join other prominent investors, such as Blackstone Inc. and Sumitomo Mitsui Financial Group Inc., which have recently invested in India’s booming housing finance sector. Carlyle has a history of investing in India, having previously held stakes in PNB Housing Finance and Yes Bank Ltd., which it sold earlier this year.
Edelweiss Financial Services Ltd. has been seeking a private equity partner to support the growth of its housing finance business. In November, Group Chairman Rashesh Shah mentioned that the company was in early talks with potential investors. Carlyle, on the other hand, has expressed its intention to write larger checks in India, focusing on majority stakes and building platforms to consolidate businesses.
With a 25-year history of investing in India, Carlyle has committed approximately $8 billion to the country. The firm’s India head, Amit Jain, has stated that Carlyle aims to increase its investments in the region. The potential acquisition of Nido Home Finance Ltd. would be a significant step in this direction, enabling Carlyle to expand its presence in India’s financial services sector.
The deal, if completed, would also demonstrate Carlyle’s confidence in India’s housing finance market, which has attracted significant investment from international players in recent years. As the Indian economy continues to grow, the demand for housing finance is expected to increase, making it an attractive sector for investors like Carlyle.