Arnya Realestates Launches ₹1,000 Crore Second Debt Fund Amid Rising Residential Credit Demand
BENGALURU: Investment firm Arnya Realestates Fund Advisors is planning to launch its second debt fund this year, aiming to raise ₹1,000 crore. This move comes at a time when credit demand from residential developers remains high, according to a top company executive.
The Category II alternative investment fund (AIF) will target ₹500 crore in base commitments, with an additional ₹500 crore green-shoe option. The proposed fund follows closely after its maiden real estate debt vehicle, Arnya Real Estate Fund-Debt, which has already deployed ₹1,000 crore in residential projects and is on track to commit another ₹200 crore by July.
Developers typically seek financing from banks, non-banking finance companies (NBFCs), and alternative lenders for construction finance, land acquisition, approvals, last-mile funding, and refinancing needs. Sharad Mittal, chief executive and founder of Arnya Realestates Fund Advisors, explained, “The new ₹1000 crore fund will be Series 2 of the first debt fund. In the real estate credit space, the primary requirement is often at the early stage of a project, for land and approvals. That was the main focus of our maiden fund. Our second fund will look at post-approval debt financing, which is less risky.”
The second fund will also expand its geographic focus to include Delhi-NCR, alongside Mumbai, Bengaluru, Chennai, Pune, and Hyderabad, which were covered under the first fund. Kiran Kumar, chief investment officer at Arnya Realestates Fund Advisors, noted that demand remains strong across mid-income, premium, and redevelopment housing segments in key urban markets.
“With a robust pipeline under evaluation and increasing interest in residential real estate credit, we remain well-positioned for the next phase of growth, including the planned launch of Series 2 of the debt fund in Q2 FY2027,” Kumar added.
According to the EY Private Credit Report, 2025 closed at $12.4 billion across 166 transactions, up 35% year-on-year in value. Real estate, healthcare, and industrial sectors were the largest contributors, with refinancing, acquisition financing, and capex funding driving deal flow.
Separately, Arnya and developer Supreme Universal announced in March that they had raised ₹1,030 crore for Arnya Real Estate Fund—Equity from domestic and offshore investors, marking the first close of its equity platform. The strategy focuses on deploying capital in Mumbai redevelopment projects, with a final close expected soon.
Arnya, founded by Mittal, a former executive director and chief executive of real estate funds at Motilal Oswal Alternates, is building a multi-vehicle platform spanning debt, equity, and direct investments. The firm anticipates that assets under management will reach about ₹2,500 crore by June 2026.
