Capital India Finance Ltd (CIFL), a prominent player in the affordable housing finance sector, has announced the sale of its subsidiary, Capital India Home Loans Limited (CIHL), to Weaver Services Private Limited for ₹267 crore. This strategic decision reflects CIFL’s intent to realign its business focus and enhance operational efficiency, catering primarily to its core areas of expertise.
Weaver Services, a company backed by seasoned professionals from HDFC, plans to leverage this acquisition to expand its footprint in the housing finance market. To finance this deal, Weaver is raising capital from notable private equity firms, including Gaja Capital and Lok Capital, with an eye on securing up to ₹800 crore in funding. This robust financial backing indicates confidence in Weaver’s capacity to innovate within the sector.
The transaction signifies a broader trend in financial services as CIFL divests from CIHL to strengthen equity capitalisation for future growth. CEO Pinank Jayant Shah notes that this capital release will enhance operational metrics. Following regulatory approvals, Weaver Services aims to launch innovative home loan products for self-employed individuals in Tier 2 and Tier 3 towns, focusing on women borrowers facing barriers to traditional finance. This acquisition marks a pivotal shift in housing finance, emphasizing the importance of serving underserved populations. As India moves toward financial inclusion, initiatives like those from Weaver Services are crucial for expanding access to essential services.