The Carlyle Group has agreed to acquire a majority stake in Nido Home Finance, a wholly-owned subsidiary of Edelweiss Financial Services Limited.

As part of the transaction, investment funds affiliated with Carlyle Asia Partners ( CAP ) will invest 2,100 crore ( US$231.9 million ), which includes acquiring a 45% stake in Nido from Edelweiss through a secondary purchase and a primary equity capital infusion of 1,500 crore, or about US$165 million, in Nido.

Established in 2010, Nido is one of India’s leading housing finance companies, providing home loans to customers across the affordable housing and mass-market segments. It operates a large network of branches, serving over 800 talukas ( sub-districts ) in India, and manages assets currently amounting to 4,804 crore.

The transaction seeks to create a win-win opportunity for all stakeholders by bringing additional capital and operational expertise to better serve the affordable housing segment, predominantly in the rural and semi-urban markets in India, a key priority for the Indian government.

Housing finance is an important pillar of India’s growth, underpinned by structural demand, policy support, and a deepening formal credit ecosystem. According to Edelweiss, the partnership seeks to advance its objective of creating and unlocking value in its businesses, while reinforcing Nido’s growth momentum through the infusion of fresh growth capital.

Carlyle says the investment reflects its continued commitment to supporting India’s high-growth housing finance sector and builds on its more than two decades of deep expertise, operating capabilities, and strong track record investing in India’s financial services sector. The Nasdaq-listed firm has invested in housing finance businesses such as PNB Housing Finance ( PNBHF ) and Housing Development Finance Corporation ( HDFC ).

Aditya Puri, senior adviser to Carlyle in Asia, and former CEO and managing director of HDFC Bank, will also participate as an investor.

The transaction is subject to regulatory approvals and other customary conditions.

AZB & Partners acted as legal advisers to Edelweiss, while Trilegal advised Carlyle.