Fintech start-up Basic home loan, a platform for automating home loans for middle- and low-income households in India, has raised $10.6 million (Rs 87.5 crore) in a Series B funding round.
The investment was led by Bertelsmann India Investments (BII), the strategic investment arm of German giant Bertelsmann SE & Co. KGaA, along with CE-Ventures, the venture capital platform of Crescent Enterprises, a leading global, diversified business headquartered in the UAE.
Existing investor Ashish Kacholia, invested further and increased his stake in the company while the round also saw participation from existing investors, including Gruhas, Let’s Venture, 9Unicorns, and Venture Catalysts.
“With this fresh round of funding, our focus is on expanding our reach, advancing our tech capabilities, and introducing tailored financial products to serve the evolving demands of the consumer and the ecosystem. We will be further expanding our risk-sharing FLDG (First Loss Default Guarantee) business with lenders, which will help us cater to a wider audience and offering innovative solutions to drive real impact in India’s housing ecosystem,” said Atul Monga, CEO and cofounder, Basic home loan.
Dexter Capital acted as the exclusive advisor to the company for this round.
Basic home loan plans to use the newly raised funds to expand its market presence, build its own lending book, and enhance its technological capabilities.
“With its superior tech stack, the company has created a simple, unique, and transparent solution in the industry and has become one of the leading channel partners for lenders in less than 3 years. We see strong tailwinds in the sector due to favorable government policies, especially for lower- and middle-income groups, rising nuclearization & improving affordability,” said Rohit Sood, partner at Bertelsmann India Investments.
The Gurugram-headquartered fintech startup has previously raised $8.7 million across three rounds of funding.
Since its inception, Basic has assisted nearly 250,000 families across over 650 districts in acquiring their own homes and generating indirect employment for 15,000 individuals in tier-2 and -3 areas. The company has sourced loan applications totaling $12 billion and disbursed more than $1.1 billion in loans through its network of lenders.
“Their ability to blend technology with on-the-ground expertise is impressive, and we are excited to be part of their journey towards transforming the housing finance ecosystem in India,” said Sudarshan Pareek, Vice President at CE Ventures. Incorporated in 2020, Basic home loan is a tech-driven mortgage marketplace that simplifies the home loan process for borrowers in tier 2 and 3 cities.
Using a hub-and-spoke model, Basic has set up hubs in 10 cities and caters to customers in 30 cities through a network of 15,000 agents.
India’s housing sector has witnessed a transformative evolution, driven by favourable government policies like the Pradhan Mantri Awas Yojana (PMAY) that promote accessibility and growth. The company has achieved 10x revenue growth in the past 24 months, led by its tech-enabled mortgage solutions.
Source Homevior.in
