Fintech startup BASIC Home Loan raised $4.7 million in a pre-Series B led by stock market investor Ashish Kacholia where Dexter Angels, IIM Indore Alumni Angel Fund, CommsCredible Venture Fund, Gruhas & Venture Catalysts, and existing investors also participated.
The company plans to utilize the fresh funds to expand its distribution to new geographical areas and establish a proof of concept for its lending arm.
Established in 2020 by Atul Monga and Ranjit Singh, BASIC Home Loan offers a digital platform to cater to the end-to-end home loan requirements of customers, particularly those residing in smaller cities and towns. The startup partners with renowned institutions such as Kotak Mahindra Bank, ICICI Bank, State Bank of India, IDFC First, L&T Finance Home Loans, and others to provide loans. BASIC Home Loan boasts of helping nearly 100,000 families across 650 districts obtain home loans through its network of over 7,500 agents.
Atul Monga, the CEO of BASIC Home Loan, revealed that the platform currently handles applications for loans worth INR 3,000 crore on a monthly basis. The infusion of new funds will enable the startup to establish a lending arm, introduce innovative products for underserved segments, and digitize credit processes. Monga emphasized the company’s goal of delivering a successful proof of concept by the end of the financial year 2024, focusing on efficient scaling and effective balance sheet risk management.
With the latest funding, BASIC Home Loan has raised a total investment of $8.7 million to date. Prominent investors supporting the company include Picus Capital, 9Unicorns, Earlsfield Capital, Good Capital, and Anupam Mittal, the founder of Shaadi.com. The startup faces competition from other players in the market such as Homeville and Easy Home Finance.
Despite the current funding climate, fintech startups continue to attract investor interest and raise capital. In May, the sector witnessed nine deals amounting to $144 million in funding, further highlighting the investor confidence in fintech ventures.
