Global private equity major Carlyle Group is in advanced discussions to acquire a majority stake in Mumbai-based Nido Home Finance, marking what could be one of the most significant recent transactions in India’s housing finance space. People familiar with the matter said Carlyle is targeting an initial investment of around $300 million in the company, which is owned by Edelweiss Financial Services.
The talks are still ongoing and the transaction has not been finalised, the people said, requesting anonymity as negotiations remain private. If completed, the deal will give Carlyle a controlling stake in the lender at a time when global investors are deepening their exposure to India’s retail credit and housing finance market.
The interest in Nido reflects a broader shift underway in India’s finance sector. After several years of regulatory tightening and balance-sheet stress across non-banking finance companies, the housing finance segment is once again drawing strong investor interest. Rising urbanisation, steady growth in home ownership, and government-backed housing schemes have revived loan demand, making the sector attractive for long-term capital.
For Carlyle, the potential Nido investment would mark a return to India’s mortgage lending business. Earlier this year, the firm exited its decade-old investments in PNB Housing Finance and Yes Bank as part of its portfolio reshuffling. The proposed Nido deal signals a renewed push, but with a sharper focus on building a standalone platform under Carlyle’s control rather than holding minority financial stakes.
If the transaction goes through, Carlyle will join a growing list of global players backing India’s housing finance story. Blackstone and Sumitomo Mitsui Financial Group have both made sizable bets in the sector in recent years, attracted by steady margins and the long runway for mortgage growth in a still under-penetrated market.
Edelweiss, which owns Nido, has long indicated its intent to bring in a strategic investor to scale up its housing finance business. During an earnings call in November, group chairman Rashesh Shah said the company was in early-stage talks with potential investors to support the next phase of growth. While Edelweiss did not respond to requests for comment on the current negotiations, Carlyle declined to comment as well.
Carlyle’s India leadership has made no secret of its ambition to deploy larger cheques and take majority ownership across key sectors. Earlier this year, the firm’s India head, Amit Jain, said Carlyle is increasingly focused on building control-oriented platforms and consolidating businesses rather than taking purely financial positions. Over the last 25 years, the firm has invested close to $8 billion across Indian real estate, financial services, technology, healthcare, and consumer sectors.
For Nido, a Carlyle-backed capital infusion could unlock faster balance sheet growth, deeper access to funding markets, and wider geographic expansion. Housing finance companies typically require long-term, stable capital to scale profitably, and a global sponsor with deep pockets could significantly alter Nido’s growth trajectory.
For the industry at large, the deal underscores a clear trend: international investors are once again placing large, confident bets on India’s retail credit engine. With mortgage demand expected to rise steadily alongside income growth and urban migration, housing finance is shaping up as one of the country’s most closely watched investment themes over the next decade.
