BASIC Home Loan, a pioneering mortgage delivery startup, has successfully raised $10.6 million (approximately INR 87.5 crores) in its Series B funding round, led by Bertelsmann India Investments (BII). This round also saw participation from notable investors including CE-Ventures, Gruhas, LetsVenture, 100 Unicorns and Venture Catalysts, as well as existing investor Ashish Kacholia.
Use of funding
The newly acquired funds will be allocated to:
- Market expansion: Strengthen its presence in different cities.
- Loan portfolio development: Build a strong portfolio to cater to a wide range of borrowers.
- Technological improvement: Improve technological capabilities to streamline operations.
About the BASIC home loan
Founded in 2020 by Atul Monga and Kalyan Josyula, BASIC Home Loan is headquartered in Gurugram. The startup aims to simplify mortgage processes through a digital platform that efficiently connects borrowers with appropriate lenders. It streamlines loan applications and facilitates quick loan disbursements, making the home loan experience more accessible and user-friendly.
The platform claims to have secured loan applications totaling $12 billion and disbursed over $1.1 billion in loans through its vast network of 90 banks and financial institutions, including major players like State Bank of India, ICICI Bank, HDFC Bank and Axis Bank.
Expansion plans
BASIC Home Loan intends to expand its services in several new cities, including:
- Pune
- Hyderabad
- Ahmedabad
- Jaipur
- Lucknow
- Patna
- Aligarh
- Kolkata
- Mangalore
- Bhopal
- India
- Vadodara
- Surah
Future goal and growth
Atul Monga expressed the company’s commitment to using the recent funding to:
- Expand its reach into new markets.
- Advanced technological capabilities.
- Introduce personalized financial products to meet changing consumer demands.
Monga highlighted their intention to further develop the First Loss Guarantee (FLDG) business with risk sharing with lenders, which will help them serve a wider audience and offer innovative solutions aimed at having a real impact on the housing ecosystem in India.
BII Partner Rohit Sood praised BASIC Home Loan for revolutionizing the home loan experience, especially for underserved and low-income borrowers in Tier 2 and Tier 3 cities. He noted that the startup has developed a simple, unique and transparent solution within the industry.
Impressive growth indicators
The startup has seen impressive growth, achieving a 10x increase in revenue over the past 24 months. Monga shared the following income milestones:
- FY22: INR 6 crore
- FY23: INR 30 crore
- Current financial year: nearly INR 60 crores
This latest funding round brings BASIC Home Loan’s total funding to $19.3 million. In previous years, the startup raised $4.7 million in a pre-Series B round, $3.5 million in Series A in 2021, and $500,000 in 2020.
Market Outlook
According to a recent Inc42 report, India’s fintech market is expected to surpass $2.1 trillion by 2030, growing at a compound annual growth rate (CAGR) of 18% between 2022 and 2030. In this landscape, lending technology is expected to emerging as the most lucrative segment, with an estimated market size of $1.3 trillion by 2030.
This strategic financing will enable BASIC Home Loan to continue its mission of transforming the mortgage distribution landscape in India, making home loans more accessible to everyone.