Nido Home Finance Limited: Company Profile

Background

Nido Home Finance Limited, formerly known as Edelweiss Housing Finance Limited, is a non-deposit-taking housing finance company (HFC) established on May 30, 2008. As a subsidiary of the Edelweiss Group, a leading diversified financial services conglomerate in India, Nido specializes in providing secured loan products tailored to the needs of individuals, particularly in the affordable housing segment. The company's mission is to facilitate homeownership and wealth creation for customers across various income segments by offering customized financial solutions. With a presence in 67 cities across India, Nido operates 67 branches, serving approximately 20,000 customers.

Key Strategic Focus

Nido Home Finance Limited's strategic focus encompasses:

Affordable Housing Segment: Emphasis on small-ticket home loans, catering to self-employed and salaried individuals, with an average loan size of approximately ₹25 lakh.

Asset-Light Business Model: Adoption of co-lending partnerships with prominent banks such as the State Bank of India (SBI) and Standard Chartered Bank (SCB), enabling shared risk and capital efficiency.

Data-Driven Approach: Utilization of data sciences for risk management, customer profiling, and operational efficiency, enhancing decision-making processes.

Liquidity Management: Establishment of long-term relationships with lenders and resource raising through securitization, ensuring financial stability.

Financials and Funding

As of March 31, 2024, Nido reported:

Total Assets: ₹3,765 crore

Total Income: ₹465.71 crore

Profit After Tax (PAT): ₹19.31 crore

Net Worth: ₹808.41 crore

The company's capital adequacy ratio stood at 39.05%, well above the regulatory minimum of 15%, indicating strong financial health.

In June 2025, Nido launched a public issue of secured redeemable non-convertible debentures (NCDs) aggregating up to ₹1,500 million, which was oversubscribed 2.05 times. The funds raised are intended for onward lending, financing, and refinancing existing borrowings.

Pipeline Development

Nido's product portfolio includes:

Home Loans: For purchase, construction, and renovation of residential properties.

Loans Against Property (LAP): Secured loans for self-employed individuals, utilizing unencumbered property.

Construction Finance: Loans for real estate developers for residential project construction.

The company focuses on expanding its affordable housing loan book, which constituted approximately 35% of the total home loan book as of March 31, 2024. This segment is expected to be a key growth driver in the coming decade.

Technological Platform and Innovation

Nido distinguishes itself through:

Proprietary Technologies: Development of customized credit underwriting models to assess customer repayment ability.

Scientific Methods: Implementation of data-driven approaches for risk management and customer profiling.

AI-Driven Capabilities: Utilization of data sciences to enhance operational efficiency and decision-making processes.

Leadership Team and Governance

Mr. Rajat Avasthi: Managing Director & CEO with over 25 years of experience in sales and corporate marketing. Prior to joining Nido, he held leadership roles at Asian Paints and Vodafone. Also serves as a member of the Risk Management Committee.

Mr. Gautam Chatterjee: Chairperson of the Audit Committee.

Mr. Sunil Phatarphekar: Chairperson of the Nomination and Remuneration Committee.

Mr. Vinod Juneja: Member of the Audit Committee.

Ms. Priyadeep Chopra: Member of the Risk Management Committee.

Mr. Ankit Aditya: Member of the Audit Committee.

Leadership Changes

In May 2023, the company changed its name from Edelweiss Housing Finance Limited to Nido Home Finance Limited, aligning with its strategic focus on affordable housing.

Market Context and Competitor Analysis

The Indian housing finance market is experiencing significant growth, driven by urbanization, government initiatives like the Pradhan Mantri Awas Yojana (PMAY), and increasing demand for affordable housing. The market includes a diverse range of players such as public sector banks, private banks, and non-banking financial companies (NBFCs).

Key competitors in the housing finance sector include:

ICICI Home Finance Company: A wholly owned subsidiary of ICICI Bank, offering home loans, loans against property, and construction finance.

HDFC Ltd.: A leading housing finance company providing a wide range of housing finance products.

LIC Housing Finance: A subsidiary of Life Insurance Corporation of India, offering home loans and loans against property.

These competitors have established market presence with diversified product offerings, posing competitive challenges to Nido.

Strategic Collaborations and Operations

Nido's asset-light business model is characterized by co-lending partnerships with banks like SBI and Standard Chartered Bank, which allow for shared risk and capital efficiency. This model enhances Nido's market reach and operational capabilities.

The company also utilizes securitization to raise resources, supporting liquidity and enabling sustainable growth.

Strategic Opportunities and Future Direction

Nido aims to expand its affordable housing loan book, which accounted for about 35% of the total home loan book as of March 31, 2024. The company plans to leverage its asset-light model and strategic partnerships to enhance market penetration and operational efficiency.

Further, Nido is focusing on technological innovations—such as proprietary underwriting models and AI-driven risk management—to improve customer experience and streamline operations.