Fintech startup BASIC Home Loan raises $4.7M in Pre-Series B funding

Fintech start-up, BASIC Home Loan has raised $4.7 million of equity investment in pre-Series B round.

The funding was led by stock market investor Ashish Kacholia, existing investors Nikhil Kamath’s Gruhas & Venture Catalysts, who have increased their stake in the company. New investors like Dexter Angels, IIM Indore Alumni Angel Fund, and CommsCredible Venture Fund are also participated in this round.

The funds raised will be utilized to expand BASIC’s distribution network to new geographies, and for building a proof of concept to start its own lending arm.

Dexter Capital Advisors was the advisor to BASIC for this round of investment.

Atul Monga, CEO and co-founder, BASIC Home Loan, said, “We have been overwhelmed by the interest shown by investors in partnering with us to help India achieve the goal of ‘housing for all’.”

He further added, “Our progress in digitizing mortgages in India is evident, as our pan-India tech-enabled distribution now handles Rs 3,000 crores in monthly applications. Having achieved EBITDA profitability in March 2023, the infusion of new funds will enable us to establish a lending arm, introducing innovative products for un/underserved segments and paving the way to digitize credit. Our goal is to deliver a successful proof of concept by FY2024, ensuring efficient scaling and effective balance sheet risk management”.

Since inception, BASIC has helped nearly 1 lac families in 650+ districts to have a house of their own, and in the process, helped with indirect employment of 7,500 people in tier-2 and -3 locations.

Ashish Kacholia, the lead investor in the Pre-series B round, said: “BASIC has built a truly robust platform to enable affordable home loans for the underserved and unserved customer segment through its unique ‘phygital’ approach. Within a short span, the company has created a pan-India ‘asset-light’ network. The company is on track to becoming the first neo-housing finance company in the country and thus, look forward to supporting BASIC in its growth journey.”

Nikhil Kamath, co-founder of Gruhas, said “BASIC is a catalyst in the transformation of affordable housing in India by bringing financial inclusion and digital empowerment to the masses. Atul and his team have deep consumer insights of the structural challenges regarding distribution and address them through their neo-housing finance solutions. We, at Gruhas, look forward to supporting BASIC as they enable housing solutions for all”.

Abhijeet Pai, co-founder, Gruhas, said, “BASIC is helping India realise its ‘housing for all’ goal with its innovative product and digitised home financing aggregation solutions. At Gruhas, we are delighted to double down our investment in BASIC, which is revolutionising the housing segment and first-time owner space with its simple, transparent, and speedy processes. They have done a splendid job till now, which gives us the belief that impact in this segment has just begun and they will be one of the leaders enabling consumers to access solutions at their doorstep”.

Including this recent round of funding, BASIC Home Loan has raised a total of $8.7 million since its inception. Picus Capital, 9Unicorns, Earlsfield Capital and Good Capital are among the company’s other key investors. In addition, the company is backed by notable angels like Anupam Mittal, and others from Venture Catalysts, LetsVenture and Angelist platforms.