Bharat Housing Network, a technology platform specializing in co-lending for affordable housing, has raised Rs 125 crore in a Series A funding round led by NABVENTURES.
The round also saw participation from Varanium NexGen Fund, 9Unicorns, Riverwalk Holdings, SMK Ventures, DMI Sparkle Fund, LC Nueva, and others.
According to the startup, the raised capital would be utilized towards strengthening its hybrid capital model and off-balance sheet lending, further driving its growth in a sector that's poised for expansion due to India's increasing population, rising incomes, and the trend of smaller household sizes.
The Co-lending advantage
Bharat Housing Network's co-lending platform for lenders seeking to build priority sector assets without the burden of significant capital and operational expenses. The platform facilitates co-lending with faster turnaround times, which is critical for meeting the burgeoning demand for affordable housing.
The startup has a target to reach $500 million in gross disbursements through the priority segment in the next three years.
Expanding reach and maintaining quality
Since its inception in 2021, Bharat Housing Network claims to have witnessed exponential growth while maintaining top-tier asset quality and near-zero delinquencies.
The platform has so far onboarded 23 financial institutions and leveraged a partner branch network to deliver capital across 200 locations in 12 Indian states.
Notably, The extensive reach is particularly significant for promoting financial inclusion and delivering housing credit to low-income groups and economically weaker sections in Tier II, Tier III, and other cities.
A Vision aligned with national goals
The investment by NABVENTURES, a fund backed by the National Bank for Agriculture and Rural Development (NABARD), Axis Bank, LIC, and others, aligns with the Indian government's initiatives like the PM Awaas Yojana (PMAY) to provide affordable housing and loans.
“Rapid urbanisation has led to an unprecedented increase in the demand for affordable housing. However, the affordable housing shortage has affected millions worldwide, particularly those with low and moderate incomes,” said Rajesh Ranjan, CEO of NABVENTURES.
“In his Independence Day speech, the Prime Minister had mentioned ensuring affordable credit for poor and middle-class housing. Our investment in Bharat Housing Network builds on the stellar efforts of PM Awaas Yojana and other government initiatives to encourage low-cost housing and affordable loans for the same. Bharat Housing Network endeavours to bring down the cost of borrowing for home loan buyers in Bharat’s hinterlands,” Ranjan added.
The housing finance industry is expected to grow at a compound annual growth rate (CAGR) of 13-14% in the long run, with home loan originations expected at Rs 10.4 trillion by the financial year 2025 (FY25) and Rs 18.7 trillion by the financial year 2030 (FY30).