Fintech startup BASIC Home Loan has successfully raised $10.6 million (Rs 87.5 crore) in its Series B funding round led by Bertelsmann India Investments (BII), with participation from CE-Ventures. Notably, existing investor Ashish Kacholia further increased his stake in the company during this round. Other existing investors, including Gruhas, Let’s Venture, 9Unicorns, and Venture Catalysts, also participated in the latest funding.
This new round brings BASIC Home Loan’s total funding to nearly $19.3 million, having previously raised $8.7 million across three earlier rounds. In June 2023, the startup secured $4.7 million in a pre-Series B round, also led by Kacholia.
Plans for Expansion and Technological Enhancements
The latest infusion of funds will be directed toward expanding the company’s market presence, building its own lending book, and enhancing its technological capabilities. By focusing on tech-enabled mortgage solutions, BASIC Home Loan aims to streamline the home loan process, particularly for middle- and low-income households in India.
Founded in 2020 by Atul Monga and Kalyan Josyula, BASIC Home Loan has developed an innovative platform designed to automate home loans. Its mission is to simplify the home loan process for underserved communities across the country. The fintech startup has already made significant strides, claiming to have helped nearly 250,000 families secure homes across more than 650 districts.
Impact and Achievements
Beyond helping families become homeowners, the company’s operations have also generated indirect employment for 15,000 individuals in tier-II and tier-III cities. The platform’s wide reach has enabled it to source loan applications totaling $12 billion, with over $1.1 billion in loans disbursed through its extensive network of lenders.
Operating with a hub-and-spoke model, BASIC Home Loan has established hubs in 10 cities and provides services in 30 cities through a network of 15,000 agents. This approach has led to significant growth, with the company reporting a 10x increase in revenue over the past two years.
Revolutionizing Home Loans with Technology
BASIC Home Loan’s success is largely driven by its use of technology to digitally transform the mortgage process. By automating key stages of the home loan journey, the startup is making it faster, more accessible, and efficient for customers in India’s smaller towns and cities. The company’s tech-enabled model caters to a vast number of customers who otherwise may face difficulties navigating the traditional mortgage process.
With this latest funding, BASIC Home Loan is poised to strengthen its position as a leader in the fintech home loan space, continuing its mission to make homeownership more accessible to a broader segment of the Indian population.
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