Mumbai: Fintech startup Basic Home Loan, an online brokerage for mortgages, has secured a $4.7 million equity investment in a pre-Series B funding round. The round was led by equity investor Ashish Kacholia, with existing investors Gruhas and Venture Catalysts increasing their stake. New investors including Dexter Angels, IIM Indore Alumni Angel Fund, and CommsCredible Venture Fund also participated. The funds raised will be utilized to expand Basic’s distribution network into new regions and develop a proof of concept for its lending arm.
Atul Monga, CEO and co-founder of Basic Home Loan, highlighted the company’s significant progress in digitizing mortgages, with its tech-enabled distribution handling around Rs 3,000 crore in monthly applications nationwide, a statement issued by the company said. The company has a network of 7,500 agents and presence in 650 districts. Picus Capital, Gruhas, Venture Catalysts, 9Unicorns, Earlsfield Capital and Good Capital are among the company’s key investors.
Basic Home Loan achieved EBITDA profitability in March 2023 and intends to establish its own lending arm, introducing innovative products for undeserved segments and driving digital transformation in credit. Monga emphasized the goal of delivering a successful proof of concept by FY2024 to enable efficient scaling and effective balance sheet risk management.
Since inception, Basic Home Loan has extended one lakh home loans across India. The company has also indirectly generated employment opportunities for 7,500 individuals in tier-2 and tier-3 locations, the statement said.
Lead investor Kacholia expressed confidence in Basic’s robust platform, which enables affordable home loans for undeserved customers through its unique “phygital” approach. Kacholia noted the company’s achievement of establishing a pan-India “asset-light” network and its trajectory toward beoming the country’s first neo-housing finance company.
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