Fintech startup Basic Home Loan, a platform for automating home loans for middle- and low-income households in India, has raised $4.7 million (around Rs 38 crore) in a pre-series B round led by stock market investor Ashish Kacholia.

Existing investors Gruhas and Venture Catalysts increased their stake in the company in this round.

The funding comes after $3.5 million raised in series A funding in October 2021 and a $500,000 seed round from Picus Capital, a Germany-based early-stage technology investment firm, in October 2020.

The company plans to use the funds to expand its distribution network and to launch a proof of concept for its lending arm.

“Our pan-India tech-enabled distribution now handles Rs 3,000 crore 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 pave the way to digitise credit,” said Atul Monga, CEO, Basic Home Loan.

The new investors in this round were Dexter Angels, IIM Indore Alumni Angel Fund and CommsCredible Venture Fund.

Dexter Capital Advisors was the advisor to Basic Home Loan for this round of investment.Ashish Kacholia, the lead investor in the pre-series B round, said, “Basic has built a robust platform to enable affordable home loans for the underserved and unserved customer segment through its ‘phygital’ approach. Within a short span, the company has created a pan-India ‘asset-light’ network.”

Since inception, Basic Home Loan has helped nearly 100,000 families in about 650 districts have a house of their own, and, in the process, indirectly employed 7,500 people in tier-2 and tier-3 locations.

“Basic is helping India realise its ‘housing for all’ goal with its innovative product and digitised home financing aggregation solutions,” said Abhijeet Pai, co-founder, Gruhas.

With this round of investment, the company has raised $8.7 million since inception. Picus Capital, 9Unicorns, Earlsfield Capital and Good Capital are among its other key investors. In addition, the company is backed by angels like Anupam Mittal and others from Venture Catalysts, LetsVenture and Angelist platforms.

Basic Home Loan has a network of around 7,500 agents, a presence in 650 districts and around 70 financing partners. The company has processed loan applications worth about $4 billion so far.

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