Gurugram-based fintech startup BASIC Home Loan recently raised Rs 87.5 crore (or $10.6 million) in a Series B. funds round led by Bertelsmann India Investments (BII) and UAE-based CE-Ventures, the venture capital arm of Crescent Enterprises.
The round also included the participation of investorsincluding prominent equity investor Ashish Kacholia, Gruhas, Let’s Venture, 9Unicorns and Venture Catalysts.
Dexter Capital acted as exclusive advisor on the deal.
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 does the BASIC Mortgage Loan do?
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 3 cities.
Through its network of agents, 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 centers in 10 cities and serves customers in 30 cities through a network of 15,000 agents.
Purpose of fundraising
BASIC Home Loan plans to expand its market presence, develop its loan portfolio and improve its technological capabilities.
“With this new round of funding, we aim to expand our reach, enhance our technological capabilities and introduce customized financial products to meet changing consumer and ecosystem demands,” said Atul Monga, CEO and co-founder of BASIC. Mortgage loan.
Focus on expanding the joint venture business model
The startup will also focus on improving its BASIC Home Loan first loss default guarantee (FLDG) business with lenders. This risk-sharing mechanism allows the company to offer innovative financial products while ensuring broader access to mortgage loans, especially for underserved borrowers.
“We will further expand our risk-sharing FLDG (First Loss Default Guarantee) business with lenders, which will help us serve a broader audience and offer innovative solutions to create real impact in India’s real estate ecosystem,” Monga added.
Presence in the BASIC Home Loan market
So far, BASIC Home Loan claims to have obtained loan applications totaling more than $12 billion and disbursed more than $1.1 billion in loans through its network of lenders.
The startup also claims to operate in 650 districts in India, helping nearly 250,000 families get homes. and generate indirect employment for 15,000 people in level 2 and 3 cities.
Investor Commentary
“BASIC Home Loan is revolutionizing the home loan experience, especially for underserved and low-income borrowers in tier II-III cities. With its superior technology, the company has created a simple, unique and transparent solution in the industry and has becoming one of the leading channel partners for lenders in less than three years We see strong tailwinds in the sector due to favorable government policies, especially for low and middle income groups, increasing nuclearization and upgrading. of affordability,” said Rohit Sood, partner at Bertelsmann Investments India.
Sudarshan Pareek, Vice President, CE Ventures, said: “At CE Ventures, we are committed to supporting companies that leverage technology to address critical needs in underserved markets. BASIC Home Loan’s innovative approach simplifies home lending for Tier 2 and 3 cities. Their ability to combine technology with on-ground expertise is impressive and we are excited to be a part of their journey towards transforming the housing finance ecosystem. in India.”
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