Weaver, a company funded by Lightspeed, plans to acquire the housing finance division of Centrum.
In a significant development for the Indian housing finance sector, Centrum Housing Finance Ltd, a company with assets under management worth Rs 1,640 crore as of June-end, is seeking a buyer for its housing finance arm. Centrum Capital, the parent company, has been pursuing this goal for approximately two years.
The potential acquisition has caught the attention of Weaver Services Pvt Ltd, a new-age home finance player founded last year by Satrajit Bhattacharya, who previously oversaw mergers and acquisitions at Housing Development Finance Corporation (HDFC). Weaver Services has agreed to buy Centrum Capital's stake in Centrum Housing Finance for an estimated $49 million.
Weaver Services, led by Bhattacharya and other former HDFC employees, recently raised $170 million from investors led by Lightspeed and PremjiInvest, with Gaja Capital also participating. The company had previously acquired Capital India Home Loans from Weaver Services for about Rs 267 crore and received the Reserve Bank of India's approval in May.
As of March 31, 2024, Centrum Capital held a 56.4% stake in Centrum Housing Finance, while Morgan Stanley owned almost 25%. Other Centrum Group companies owned a 17.5% stake. Centrum Housing Finance's net worth was Rs 475 crore as of the same period, with a reported turnover of Rs 213 crore during the last financial year ended March 2025.
Centrum Housing Finance has offices in over 100 cities and a client base of over 18,000 customers. The company received an equity infusion of around Rs 190 crore for a 25% stake from a fund managed by Morgan Stanley Private Equity Asia in March 2020, indicating its potential growth and attractiveness to investors.
It remains unclear if Morgan Stanley Private Equity will also sell its stake in Centrum Housing Finance. However, the acquisition by Weaver Services could mark a significant shift in the Indian housing finance sector, with a new player entering the market.
The deal, if finalised, will further strengthen Weaver Services' position in the home finance market, providing them with a larger customer base and increased assets under management. This could potentially lead to increased competition in the sector, benefiting consumers through improved services and more competitive rates.
As the deal progresses, more details are expected to emerge, providing a clearer picture of the future of Centrum Housing Finance and the Indian housing finance sector as a whole.
