Unico Housing Finance raises Rs 120 Cr from Anicut Capital, UC Impower to fuel expansion
The equity infusion is expected to boost Unico’s net worth beyond Rs 210 crore and help scale its operations across under-served Tier II and III cities.
Chennai-based Unico Housing Finance Pvt. Ltd has raised Rs 120 crore from Anicut Capital and UC Impower to expand its footprint in India’s affordable housing finance market, which is seeing strong demand from first-time home buyers in smaller towns.
The funding, an equity infusion, will boost the lender's net worth beyond Rs 210 crore and help scale its operations across under-served Tier II and III cities, the company said in a statement.
Since starting operations in December 2023, Unico Housing Finance has grown to 86 branches across seven states and built assets under management of about Rs 500 crore in 18 months.
“India's affordable housing finance market is poised to exceed $100 billion over the next decade, driven by rising urbanisation, regulatory tailwinds, and a growing demand for first-time home ownership,” said Dhruv Kapoor, Partner at Anicut Capital.
“Yet, legacy institutions often fall short in serving this segment with agility and empathy. Unico's differentiated model—combining deep regional insight with robust risk management—positions it as a new-age lender that can unlock real impact while delivering sustainable returns.”
Unico focuses on self-employed and middle-income households with average loan sizes of Rs 13 lakh to Rs 15 lakh, offering products ranging from home construction loans to loans against property. The firm operates on a fully digital platform, and claims industry-best turnaround times.
“Our investment in Unico reflects our conviction in India's affordable housing story and in the team's ability to deliver impact and returns at scale,” said Mona Kachhwaha, Co-Founder and Partner at UC Impower. “We look forward to partnering with them as they expand access to housing finance for low-income families that have long been excluded by traditional lenders.”
Unico is led by Managing Director & Chief Executive Officer Babu Vellingiri, who earlier helped scale Cholamandalam’s housing finance business from scratch to an AUM of Rs 7,000 crore.
“We are pleased to welcome Anicut Capital and UC Impower as strategic investors in Unico Housing Finance,” said Vellingiri. “Their 120 crore investment is a strong endorsement of our vision, our digital-first operating model, and our commitment to expanding financial inclusion through affordable housing solutions.”
InteQuant Advisors acted as the exclusive financial advisor to the transaction.
Anicut Capital is an alternative asset management company which manages around Rs 3,500 crore across debt and equity funds. It has brands such as Milky Mist, Bira, Wingreens and Blue Tokai in its portfolio. UC Impower, incubated by Unitus Capital, backs early-growth companies in financial services and climate solutions.
Edited by Swetha Kannan