[Funding alert] Varanium NexGen Fund leads investment in fintech startup HomeCapital
, a Mumbai-based fintech startup focussed on accelerating housing among millennials in India, has raised a funding round led by Varanium NexGen Fund. The round also saw participation from Venture Catalysts, JITO Incubation and Innovation Foundation, Singapore Angel Network, Venture Gurukool, and Shalin Shah among other investors.
Founding team of HomeCapital said,
“With this capital commitment, we continue to build a strong business foundation in the housing sector to support aspiring homebuyers and remain focussed in bringing a positive impact in the lives of millions of people.”
The company claims that it supports home buyers in eight cities including Mumbai, Bengaluru, Chennai, Pune, and Kolkata amongst others. The proceeds of this round will be used by HomeCapital to expand operations and scale technology infrastructure. Unitus Capital was the financial advisor to the transaction.
HomeCapital’s Co-founders Madhusudan Sharma and Prasad Ajinkya
Founded in 2017, the company said its prime mission is to enable aspiring homebuyers accelerate their home ownership through its down payment assistance programme. The programme provides down payment assistance to homebuyers of up to half of their initial costs at zero interest rate, the firm added. Homebuyers pay back the zero-cost assistance over a period up to 1-2 years, and thus helping them to build equity in the homes, it said.
Aparajit Bhandarkar, Partner, Varanium Fund added,
“Home Capital’s product addresses an important challenge for the millennial home buyers and the real estate market. The team has a strong track record of execution, both from a technology and business perspective at frugal costs.”
The company said it aims to help accelerate the $100 billion housing industry, poised to reach approximately $500 billion by 2025. HomeCapital claims to have facilitated $125 million of housing sales till date through its flagship program.
The company is also in pilot stages of HomeNxt, an industry-wide home loan co-lending platform. This platform will facilitate the flow of credit to affordable housing and share lending infrastructure among the housing finance companies.