Kedaara Capital completes the sale of its residual stake in Aavas Financiers, one of India’s leading affordable housing finance companies
India, 2 July 2025: Kedaara Capital (“Kedaara”), a leading private equity firm focused on investing in high-quality businesses in India, has completed the sale of its residual stake in Aavas Financiers (“Aavas” or “the Company”) to CVC Capital, generating strong returns for its investors. CVC Capital’s investment in Aavas Financiers marks the largest transaction in India’s affordable housing finance sector to date.
With an AUM of INR 204 billion, Aavas is one of India’s leading affordable housing finance companies, serving low and middle-income customers in semi-urban and rural regions. The Company provides home loans for the purchase, construction, extension, and improvement of residential properties.
Kedaara Capital acquired a majority stake in Aavas in 2016 through a
carve-out from its former parent, and played a pivotal role in its
journey. Under Kedaara’s ownership, Aavas helped
Sandeep Tandon, Chairperson and Independent Director of Aavas Financiers, said: “Kedaara Capital has been a true institutional partner in every sense. Their vision, strategic input, and operational expertise have played a vital role in shaping Aavas into one of India’s most respected affordable housing finance companies. This transaction demonstrates the ability of Kedaara Capital to add meaningful value and build an institution that creates lasting impact on the industry and society. On behalf of the Board, I extend our sincere appreciation for their commitment to long-term value creation and governance-led growth.”
Sachinder Bhinder, MD & CEO, Aavas Financiers, added “We are grateful to Kedaara Capital for their unwavering support and guidance during a defining chapter in our growth. Their deep domain knowledge, strategic discipline, and collaborative ethos enabled us to scale responsibly while staying true to our mission. They have always priortised compliance / asset quality over growth. This transaction is a testament to the strength of the franchise and the unique platform we continue to build.”
Nishant Sharma, Founder and Managing Partner, and Rahul Mehta, Director and Co-Lead of Financial Services at Kedaara Capital, said: “We invested in Aavas in 2016 with the belief that high-quality housing finance institutions serving India’s underserved communities could deliver both scale and impact. Over the last 9 years, we feel proud to work alongside one of the most talented teams under leadership of Sachinder Bhinder and an exceptional Board. We are grateful to Sandeep Tandon (Chairperson), Soumya Rajan, Kalpana Iyer, K R Kamath and Vivek Vig for their guidance, stewardship, and unwavering commitment to building Aavas as a long-term institution of excellence. Aavas has scaled into an institution that priortises governance, compliance, asset quality, customers and employees. During our ownership, Aavas’s AUM grew ~12x – from INR 17 billion to INR 204 billion (32% CAGR), while PAT grew ~18x – from INR 328 million to INR 5.74 billion (37% CAGR). We are proud of what we’ve built, and this exit reinforces Kedaara’s commitment to partnering with category-defining businesses driven by trust, purpose, and performance.”
About Kedaara Capital
Kedaara is an operationally oriented private equity firm pursuing control and minority investment opportunities in India. It currently manages over $6 billion through investments in several market-leading businesses across a variety of sectors including financial services, consumer, pharma/healthcare, and technology/business services. Since its inception, Kedaara has remained singularly dedicated to its stated strategy of focusing on investments built through trust-based relationships with best-in-class entrepreneurs and management teams across secular fast-growing end markets. Kedaara combines the strengths of a well-networked, highly experienced local investing and operating team, with the experience of their strategic partner, Clayton, Dubilier & Rice, a global private equity firm.