[Funding alert] BASIC Home Loan raises $500K in seed round from Picus Capital
BASIC Home Loan, a Gurugram-based startup developing a platform for automating home loans for middle and low-income households in India, has raised a $500,000 Seed round from Picus Capital, a Germany-based early-stage technology investment firm.
Atul Monga, Co-founder and CEO, Basic Home Loan said,
“During a home loan process especially affordable housing, a customer has to go through multiple touch points, which is a pain. We are working to ensure that our tech enabled agent handholds them through this process of fulfillment from 'documentation' to 'disbursement' as their single point of contact.”
“With support from Picus Capital's funds and ecosystem, our focus will be on changing the way how Bharat (India) finances its affordable homes,” Atul added.
Founded in 2020, BASIC Home Loan's vision is to digitise the home loans process and increase affordable loans penetration for mid-and low-income households in India. It aims to use the 'Phygital' approach in creating a network of agents who utilize its technology in handholding consumers, from 'research' to 'final disbursement' of home loans.
The startup has been Co-founded by Atul Monga, Kalyan Josyula and Pranav Khattar. The trio carry experience of building ventures in the fintech space, and have worked with companies such as Policybazaar, Ola, Lazada, Credit Suisse, HDFC Life, and Wadi.com in the past.
As per the Reserve Bank of India (RBI) estimates, the current size of home loans market is about $250 billion and is increasing at 20 percent year-on-year. The government's vision is to provide 'housing for all by 2022’. This translates to 20 million additional homes for LIG and EWS households to be built by 2022. BASIC Home Loan believes there is a big opportunity to tap this underserved segment leveraging technology.
In its first month of operations, BASIC Home Loan has sourced $6 million loans for Indian borrowers, and sanctioned $3 million so far. It aims to cross $60 million loan disbursals in the first year of operations. Currently, it is setting up distribution and sourcing applications for lenders, but wants to create its own book for affordable housing loans, in the long run.
“We believe that Basic Home Loan has a very unique proposition to solve a very basic problem that consumers face i.e. quick formal finance access for affordable home purchases in India. The Indian lending market has huge automation opportunities, and we want to support Basic Home Loan in fully tapping that potential,” added Oliver Heinrich, Partner at Picus Capital, GmbH.
Picus Capital current investments in India include Lido Learning (education), Meddo (healthcare), and MoneyOnClick (lending).
Edited by Kanishk Singh