Easy Bags $35 Mn To Offer Mortgage-Backed Loans To Home Buyers

Lending tech startup Easy Home Finance has raised $35 Mn as part of its Series B funding round co-led by Claypond Capital, the investment office of Manipal Group’s Ranjan Pai, and Japanese banking giant Sumitomo Mitsui’s Asia Rising Fund. 

The round also saw participation from existing investors Xponentia Capital, Finsight Ventures, Harbourfront Capital, and Pegasus India. 

In a statement, Easy said that it will utilise the fresh capital to expand its assets under management (AUM) to $300 Mn within the next 24 months and grow its network to over 150 locations across India. 

As part of the transaction, Sumitomo Mitsui’s India mortgage arm, SMFG India Home Finance Company, will also collaborate with Easy Home Finance to “bring continued affordability and innovation to India’s housing market and contribute to its sustainable growth”.

“… This funding will propel our efforts to make home financing truly digital, efficient, and accessible… We’re thrilled to bring this transformative approach to underserved communities, empowering more individuals to fulfill their dream of owning a home,” Easy Home Finance’s founder and MD, Rohit Chokhani, said.

Commenting on the fundraise, Claypond Capital’s chief investment officer (CIO) Shyam Powar said, “… We are excited to join forces with Rohit and the Easy team in this mission to digitise the mortgage industry, ensuring that more individuals can realise their dream of homeownership.”

Founded in 2017 by Chokhani, Easy is a home finance company that leverages technology to offer paperless mortgage-backed loans and other financial services to its customers. 

Including the current round, the Mumbai-based startup has raised more than $100 Mn in equity and debt funding to date. It last raised $15 Mn as part of its Series A round led by Xponentia Capital in 2021.

The fundraise comes at a time when the Indian lending tech startup ecosystem continues to pull in healthy investor interest despite the ongoing funding winter. In September, mortgage distribution startup BASIC Home Loan raised $10.6 Mn in its Series B round led by Bertelsmann India Investments (BII).

Last month, non-banking financial company (NBFC) Finova Capital secured $135 Mn in its Series E round from Avataar Venture Partners, Sofina, among others. Prior to that, Aye Finance, too, bagged INR 250 Cr in its Series G funding round led by Singapore-based impact investor ABC Impact.

As per an Inc42 report, India’s lending tech space is projected to become a $1.3 Tn market opportunity by 2030.