Unlocking Homes in Central/South India: Ummeed Raises $76M

June 20, 2024: Startup Ummeed Housing Finance, that offers Home Loan, Business Loan, Loan against property to lower & middle income Indian families from the Urban & Semi Urban areas, has raised $76 million in a Series F equity, The thrust of the funds raised is aimed to drive the startup’s expansion into central and southern parts of the country

“Housing and business finance to middle and low-income borrowers is a large and important market for India, and we hope to contribute to Ummeed’s endeavour to be one of the best companies serving this consumer base,” said Gautam Mago, General Partner of A91 Partners.

Established in 2016 by Ashutosh Sharma, the housing finance firm operates in seven north and central Indian states. With 35000+ customers and a AUM of 1750 cr, has already embarked on building a substantial book size of loans. The focus of the company is to leverage technology in delivering a superior customer experience through out the life cycle of the loan.

Ummeed Offers Access to Home Loans for Informal Income Households

The primary chunk of the funds raised is expected to drive the startup’s expansion into central and southern parts of the country. “With this equity infusion, we are well-positioned to execute our ambitious growth plan, focusing on housing loans and small ticket business loans for informal income segments, steadily building a granular portfolio that reflects our staunch commitment to inclusive financial solutions,” said Sharma.

Ummeed Housing Finance‘s latest funding round, which includes nearly Rs 300 crore in primary capital, also marked the exit of Lightrock Global Fund S.A., which had invested in the company in 2018.

Presently, the housing finance firm has assets under management of up to Rs 1,800 crore as of May 2024. Government initiatives like the Pradhan Mantri Awas Yojana (PMAY) and the Credit Linked Subsidy Scheme (CLSS) have been instrumental in providing subsidies and incentives to first-time home buyers in the economically weaker sections, middle-income groups, and low-income group categories. The company added that about 35% of its housing loan customers have been eligible for these subsidies.

DC Advisory India was the exclusive financial advisor to the company and its existing shareholders. The startup has a strong network of 115 branches across Tier II, III, and IV locations and has disbursed loans amounting to Rs 2,840 crore to over 35,000 customers since its inception.

The fundraise was from A91 Partners LLP, Mirae Asset Venture Investments (India), and Anicut Capital. The funding round also saw participation from existing investor Norwest Venture Partners.

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