Basic Home Loan raises Rs 87.5 crore in a Series B funding round

Basic Home Loan, a fintech startup that streamlines home loans for middle- and low-income families in India, has secured $10.6 million (Rs 87.5 crore) in a Series B funding round. The investment was spearheaded by Bertelsmann India Investments (BII), the strategic investment division of German conglomerate Bertelsmann SE & Co. KGaA, and CE-Ventures, the venture capital arm of Crescent Enterprises, a prominent global, diversified company based in the UAE.

Ashish Kacholia, an existing investor, increased his stake in the company, while other existing investors, such as Gruhas, Let's Venture, 9Unicorns, and Venture Catalysts, also participated in the round.

Atul Monga, CEO and cofounder of Basic Home Loan, said, "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 offering innovative solutions to drive real impact in India's housing ecosystem."

The company, which was exclusively advised by Dexter Capital for this funding round, intends to utilize the newly raised capital to broaden its market presence, establish its own lending book, and strengthen its technological capabilities.

Rohit Sood, partner at Bertelsmann India Investments, commented, "With its superior tech stack, the company has created a simple, unique, and transparent solution in the industry and has become one of the leading channel partners for lenders in less than 3 years. We see strong tailwinds in the sector due to favorable government policies, especially for lower- and middle-income groups, rising nuclearization & improving affordability."

Basic Home Loan has earlier secured $8.7 million in funding across three rounds since its establishment. The company has helped nearly 250,000 families in over 650 districts to purchase their own homes, creating indirect employment opportunities for 15,000 people in tier-2 and -3 regions. Basic has processed loan applications amounting to $12 billion and disbursed more than $1.1 billion through its network of lenders.

Sudarshan Pareek, Vice President at CE Ventures, praised Basic's ability to combine technology with on-the-ground expertise, stating, "Their ability to blend technology with on-the-ground expertise is impressive, and we are excited to be part of their journey towards transforming the housing finance ecosystem in India."

Founded in 2020, Basic Home Loan operates as a tech-driven mortgage marketplace, simplifying the home loan process for borrowers in tier 2 and 3 cities. The company employs a hub-and-spoke model, with hubs established in 10 cities and a network of 15,000 agents serving customers in 30 cities.

The housing sector in India has undergone a significant transformation, supported by favorable government policies such as the Pradhan Mantri Awas Yojana (PMAY), which aims to improve accessibility and foster growth. Basic has achieved a remarkable 10x revenue growth over the past 24 months, driven by its tech-enabled mortgage solutions.

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