BASIC Home Loan has secured $10.6 million in Series B funding to expand market reach, enhance technology, and build its lending portfolio.
The company has processed loans totalling $12 billion and disbursed over $1.1 billion through its network of 90 banks and financial institutions.
Plans for expansion include entering 13 new cities and continuing to serve low-income borrowers in Tier 2-3 cities, reflecting a significant growth trajectory in revenue over the last two years.
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Mortgage distribution startup BASIC Home Loan has bagged $10.6 Mn (INR 87.5 Cr) as a part of its Series B funding round led by Bertelsmann India Investments (BII).
The round also saw participation from CE-Ventures, Gruhas, LetsVenture, 100 Unicorns and Venture Catalysts, along with existing investor and equity investor Ashish Kacholia.
The company plans to use the fresh funds to expand its market presence, build lending portfolio and boost technology capabilities.
Founded in 2020 by Atul Monga and Kalyan Josyula, Gurugram-based BASIC Home simplifies mortgage processes through a digital platform that matches borrowers with suitable lenders, streamlines applications, and facilitates quick loan disbursements.
The platform claims to have sourced loan applications totaling $12 Bn and disbursed over $1.1 Bn in loans through its network of lenders. It counts 90 banks and financial institutions, including State Bank of India, ICICI, HDFC and Axis Bank among its partnership portfolio.
The startup plans to expand into cities, including Pune, Hyderabad, Ahmedabad, Jaipur, Lucknow, Patna, Aligarh, Kolkata, Mangalore, Bhopal, Indore, Vadodara, and Surat.
“With this fresh round of funding, our focus is on expanding our reach, advancing our tech capabilities, and introducing tailored financial products to serve the evolving demands of the consumer and the ecosystem. We will be further expanding our risk-sharing FLDG (First Loss Default Guarantee) business with lenders, which will help us cater to a wider audience and offer innovative solutions to drive real impact in India’s housing ecosystem,” Monga said.
Rohit Sood, partner at BII, said, “BASIC Home Loan is revolutionising the home loan experience, especially for the underserved, low-income borrowers from tier 2-3 cities. With its tech stack, it has created a simple, unique, and transparent solution in the industry.”
The startup claims to have achieved 10X revenue growth in the past 24 months. Monga said, “In FY22, our revenue was around INR 6 Cr, In FY23, it was INR 30 Cr and this year we are close to INR 60 Cr.”
The latest round brings BASIC Home Loans’ total funding to $19.3 Mn. Last year, the startup raised $4.7 Mn in a Pre-Series B funding round, $3.5 Mn Series A in 2021 and $500,000 in 2020.
According to the latest Inc42 report, the Indian fintech market is projected to reach $2.1 Tn+ by 2030, growing at a CAGR of 18% from 2022 to 2030. Lendingtech emerges as the most lucrative segment, with an estimated market size of $1.3 Tn by 2030.
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