BASIC plans to Use New Funding to Broaden Market Reach, Develop Its Lending Portfolio, and Strengthen Technological Expertise
FinTech BizNews Service
Mumbai, September 30, 2024: BASIC Home Loan, a fintech platform for distribution of mortgages, has raised $10.6 million (Rs87.5 crores) in a Series B funding round. The investment was led by Bertelsmann India Investments (BII), the strategic investment arm of German giant Bertelsmann SE & Co. KGaA, along with participation of CE-Ventures, the venture capital platform of Crescent Enterprises, a leading global, diversified business headquartered in the UAE.
Existing investor Ashish Kacholia, a well-known equity investor, invested further and increased his stake in BASIC. The round also saw participation from existing investors, including Gruhas, Let's Venture, 9 Unicorns, and Venture Catalysts. Dexter Capital acted as the exclusive advisor to BASIC for this round.
BASIC Home Loan plans to use the newly raised funds to expand its market presence, build its own lending book, and enhance its technological capabilities. The Gurugram-headquartered fintech startup has previously raised $8.7 million across three rounds of funding.
Since its inception, BASIC has assisted nearly 250,000 families across over 650 districts in acquiring their own homes and generating indirect employment for 15,000 individuals in tier-2 and -3 areas. The company has sourced loan applications totaling $12 bn+ and disbursed more than $1.1 billion in loans through its network of lenders.
“We're thrilled to have Bertelsmann as our investor in our journey to make home ownership more accessible for millions of people living across tier 2 and tier 3 cities in India,” said Atul Monga, CEO and Co-founder, BASIC Home Loan.
“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,” added Monga.
Rohit Sood, Partner at Bertelsmann India Investments, said: “BASIC Home Loan is revolutionizing the home loan experience, especially for the underserved, low-income borrowers from tier 2-3 cities. With its superior tech stack, it 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, rising nuclearization & improving affordability. We're proud to join Atul and Kalyan in this journey.”
Sudarshan Pareek, Vice President at CE Ventures, said, “At CE Ventures, we are committed to supporting companies that leverage technology to address critical needs in underserved markets. BASIC Home Loan's innovative approach simplifies home loans for tier 2 and 3 cities. 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."
Incorporated in 2020, BASIC Home Loan is a tech-driven mortgage marketplace that simplifies the home loan process for borrowers in tier 2 and 3 cities. Through its extensive Agent Network, the company offers users the ability to compare loans from multiple lenders while guiding them throughout the application process.
Using a hub-and-spoke model, BASIC has set up hubs in 10 cities and caters to customers in 30 cities through a network of 15,000 agents. In just three years, BASIC has emerged as a top channel partner for lenders, achieving an industry benchmark setting login-to-sanction rate of 75% by effectively matching customers with lenders.
India's housing sector has witnessed a transformative evolution, driven by favourable government policies like the Pradhan Mantri Awas Yojana (PMAY) that promote accessibility and growth. The company has achieved 10x revenue growth in the past 24 months, led by its tech-enabled mortgage solutions.
