BASIC Home Loan, a Gurugram-based fintech startup, recently raised Rs 87.5 crore (or $10.6 million) in a Series B round. funding round led by Bertelsmann India Investments (BII) and UAE-based CE-Ventures, the venture arm of Crescent Enterprises.
The cycle also saw the participation of investorsincluding prominent equity investor Ashish Kacholia, Gruhas, Let’s Venture, 9Unicorns and Venture Catalysts.
Dexter Capital served as exclusive advisor for the transaction.
Before this round, the the startup raised $4.7 million in a pre-Series B funding round in June 2023 led by Ashish Kacholia
What is the BASIC home loan used for?
Founded in 2020 by Atul Monga and Kalyan Josyula, BASIC Home Loan is a technology-driven mortgage marketplace that simplifies the home loan process for borrowers in Tier 2 and Tier 3 cities.
Through its agent network, the startup allows users to compare loans from multiple lenders while guiding them through the application process.
Using a hub-and-spoke model, it has established hubs in 10 cities and serves customers in 30 cities through a network of 15,000 agents.
Fundraising goal
BASIC Home Loan plans to expand its market presence, grow its loan portfolio and improve its technological capabilities.
“With this new round of funding, we are focused on expanding our reach, developing our technological capabilities and introducing tailor-made financial products to meet the changing demands of the consumer and ecosystem,” said Atul Monga, CEO and co-founder of BASIC. Real estate loan.
Focus on the expansion of the risk-sharing economic model
The startup will also focus on improving its BASIC Home Loan FLDG (First Loss Default Guarantee) business among lenders. This risk-sharing mechanism allows the company to offer innovative financial products while ensuring broader access to home loans, particularly for underserved borrowers.
“We will further develop our FLDG (First Loss Default Guarantee) risk sharing business with lenders, which will help us cater to a wider audience and deliver innovative solutions to make a real impact on the housing ecosystem in India,” Monga added.
Presence of BASIC Home Loan on the market
To date, BASIC Home Loan says it has obtained loan applications totaling more than $12 billion and disbursed more than $1.1 billion in loans through its lender network.
The startup also claims to operate in 650 districts in India, helping nearly 250,000 families get housing. and generate indirect employment for 15,000 people in tier 2 and 3 cities.
Investor commentary
“BASIC Home Loan revolutionizes the home loan experience, especially for underserved and low-income borrowers in Tier II-III cities. With its superior technology stack, the company has created a simple, unique and transparent solution in the industry and become a leading channel partner for lenders in less than 3 years. We are seeing strong tailwinds in the sector due to favorable government policies, especially for low and middle income groups, rising nuclearization and improving affordability,” said Rohit Sood, partner. at Bertelsmann India Investments.
Sudarshan Pareek, Vice President of CE Ventures, said: “At CE Ventures, we are committed to supporting companies that leverage technology to meet the critical needs of underserved markets. BASIC Home Loan’s innovative approach simplifies home lending for Tier 2 and Tier 3 cities. Their ability to combine technology and on-the-ground expertise is impressive, and we are excited to be part of their journey towards home transformation. housing finance ecosystem in India.