Weaver signs definitive agreement to acquire Capital India Home Loans

By Gloria Mathias

Weaver Services (WEAVER) has announced the execution of definitive documents for the acquisition of 100% of Capital India Home Loans Limited’s fully diluted equity capital for a total consideration of $31.7 million (INR 267 crore).

This acquisition is a step forward in WEAVER’s mission to redefine the landscape and reach of affordable housing finance.

Upon securing the necessary regulatory approvals and completing the acquisition, WEAVER will launch a suite of home loan products tailored specifically for Indian citizens. The primary focus will be on empowering self-employed individuals in the unorganised sector, particularly in Tier 2 and Tier 3 towns. WEAVER is committed to championing financial inclusion, with a special emphasis on catering to women borrowers who often face barriers in accessing traditional financial services.

WEAVER consists of a formidable group of experienced finance professionals, including Satrajit Bhattacharya, who previously led the Investments and M&A function at HDFC Limited and other former HDFC executives. Following this acquisition, Satrajit will assume a non-executive role, continuing to guide the company’s strategic vision.

To finance this acquisition and fuel its ambitious pan-India expansion plans, WEAVER is raising capital from private equity funds, including Gaja Capital and Lok Capital, to secure up to INR ~800 crore in funding. This capital infusion will be instrumental in launching new products and enhancing operational capabilities, positioning WEAVER as a significant force in the affordable housing finance sector.

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.”

Through this acquisition, WEAVER aims to establish its market presence and drive change, delivering customised financial solutions that cater to the unique needs of its diverse customer base.