Easy Home Finance Partners ICICI HFC To Offer Digital, Paperless Loans To Home Buyers

Mumbai-based mortgage startup Easy Home Finance Ltd has entered into a partnership with ICICI Home Finance Company (HFC) to offer digital-first loans to home buyers.

The partnership will leverage Easy’s neo-banking infrastructure to bring digital, paperless loan services to its users. On the other hand, ICICI HFC will offer capital and experience to scale up the partnership. 

Speaking to Inc42, Easy Managing Director Rohit Chokhani said that the move will enable the startup to gain capital and deploy its tech platform to add more customers to its user base. He further added that the partnership will allow Easy to access cheaper capital without the need to dilute its stake.

Founded in 2018 by Chokhani, Easy offers ‘instant’ home loans to customers across the country digitally. Registered with the National Housing Bank, the startup operates on the physical-digital model and offers faster loan processing and disbursements.It raised $15 Mn in its Series A round led by Xponentia Capital Partners in July 2021. 

Chokhani said that Easy aims to process more than $500 Mn in loans over the next 3 years. Of this, $200 Mn will be processed with the capital deployed by ICICI HFC, while another $50 Mn will be executed via its partnership with the Kerala-based ESAF Small Finance Bank. The rest will be on company books, he added.

Easy will deploy its system to enable ICICI HFC to acquire customers and will look after the entire life-cycle of the loan process – from sourcing to underwriting and from appraisal to disbursement. 

Under the partnership, the startup will focus on underserved customers in the hinterlands with a ticket size of INR 20-25 Lakh.

The co-lending partnership will also enable Easy to save liquidity and deploy cheaper capital from ICICI HFC to grow its user base and scale operations. 

“The biggest pain that the sector faces is raising capital. But this deal will clear our runway for the next two years for a fundraise,” added Chokhani.

Easy plans to reach more than 15,000 homes in the next 2-3 years through disbursals worth $200 Mn, Chokhani said.

Easy claims that its business is growing 30-35% month-on-month (MoM). The startup said it grew at a rate of 400% year-on-year (YoY) in the past two years, and its current revenue run rate stands at $30 Mn per month.

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