LoanKuber Secures Funding To Offer Customised Mortgage Loans To MSMEs

Fintech startup LoanKuber has raised $2 Mn in its ongoing Series A funding round led by Inflection Point Ventures.  

Accolade Holdings, LetsVenture, and angel investors, including Prashant Tandon of 1Mg, Pankaj Vermani of Clovia, and Vishal Gupta of TA Associates also participated in the round.

LoanKuber will use the fresh funds to improve its existing tech stack and expand the team. The startup will also deploy capital to scale its asset under management (AUM).

The development comes almost a year after LoanKuber secured INR 13 Cr in Pre-Series A round led by Lets Venture along with participation from Inflection Point Ventures. 

Founded in 2017 by IIT Delhi graduate Saurabh Nagpal, LoanKuber offers mortgage-based financing solutions to small and medium-sized enterprises. 

“The current fundraising will help us further invest in the team, technology, and operations to fulfill our mission. We are not just building a mortgage lending business; we are also transforming the lives of the Next 500 million people by unlocking the economic value of semi-urban and rural properties with our mortgage solutions,” said Saurabh Nagpal.

The fintech startup shared that it operates three channels – digital connector platform, lead generation platform, and low-cost branches, which help reduce customer acquisition costs by 30%.

According to the startup, the mortgage financing gap for MSMEs in India is currently anticipated to be $300 Bn.

“Over the last year, LoanKuber has successfully built an extremely capital-efficient and profitable business. We’re deeply impressed by the LoanKuber Team and their meticulous execution. We have invested in the company from their Pre-Series A stage and continue to back their vision as they grow at a healthy rate and address a huge financing gap,” said, Mitesh Shah, cofounder of Inflection Point Ventures.

The startup aims to build an AUM of INR 200 Cr in the next 15 months.

In India’s lendingtech space, it competes with the likes of NAKAD, LendingKart and KredMint.

As per an Inc42 report, the country’s fintech industry is set to become a $1.3 Tn space by 2025. The industry will expand at a 31% CAGR by the forecasted period (2025). Of this, lendingtech will capture 47% or $616 Bn by 2025.

Some of the recent fundraises in the segment include — KredMint securing $2 Mn seed funding, Progcap raising $10 Mn from Beams Fintech Fund and Zype lapping INR 146 Cr, among others.