Fintech startup BASIC Home Loan raises Rs 87.5 crore in a Series B round

Gurugram-based fintech startup BASIC Home Loan recently raised Rs 87.5 crore (or $10.6 million) in a Series B funding round led by Bertelsmann India Investments (BII) and UAE-based CE-Ventures, the venture capital arm of Crescent Enterprises. 

The round also saw participation from existing investors, including prominent equity investor Ashish Kacholia, Gruhas, Let’s Venture, 9Unicorns, and Venture Catalysts.

Dexter Capital served as the exclusive advisor for the deal.

Prior to this round, the startup raised $4.7 million in a pre-Series B funding round in June 2023 led by Ashish Kacholia

What does BASIC Home Loan do?

Founded in 2020 by Atul Monga and Kalyan Josyula, BASIC Home Loan is a tech-driven mortgage marketplace that simplifies the home loan process for borrowers in tier 2 and 3 cities. 

Through its agent network, the startup allows users to compare loans from multiple lenders while guiding them through the application process.

Using a hub-and-spoke model, it has established hubs in 10 cities and caters to customers in 30 cities through a network of 15,000 agents.

Purpose of fundraising

BASIC Home Loan plans to expand its market presence, build its lending book, and enhance its technological capabilities.

“With this fresh round of funding, our focus is on expanding our reach, advancing our tech capabilities, and introducing tailored financial products to serve the evolving demands of the consumer and the ecosystem," said Atul Monga, CEO and Co-founder of BASIC Home Loan.

Focus on expanding the risk-sharing business model

The startup will also focus on enhancing its BASIC Home Loan’s First Loss Default Guarantee (FLDG) business with lenders. This risk-sharing mechanism allows the company to offer innovative financial products while ensuring broader access to home loans, especially for underserved borrowers. 

"We will be further expanding our risk-sharing FLDG (First Loss Default Guarantee) business with lenders, which will help us cater to a wider audience and offer innovative solutions to drive real impact in India’s housing ecosystem,” Monga added.

BASIC Home Loan's market presence

So far, BASIC Home Loan claims to have sourced loan applications totalling more than $12 billion and disbursed more than $1.1 billion in loans through its network of lenders.

The startup also claims to operate in 650 districts in India, helping nearly 250,000 families secure homes and generating indirect employment for 15,000 individuals in tier-2 and tier-3 cities.

Investors comment

"BASIC Home Loan is revolutionizing the home loan experience, especially for the underserved, low-income borrowers from tier II-III cities.With its superior tech stack, the company has created a simple, unique, and transparent solution in the industry and has become one of the leading channel partners for lenders in less than 3 years. We see strong tailwinds in the sector due to favorable government policies, especially for lower- and middle-income groups, rising nuclearization & improving affordability,” said Rohit Sood, partner at Bertelsmann India Investments.

Sudarshan Pareek, Vice President at CE Ventures, said, “At CE Ventures, we are committed to supporting companies that leverage technology to address critical needs in underserved markets. BASIC Home Loan’s innovative approach simplifies home loans for tier 2 and 3 cities. Their ability to blend technology with on-the-ground expertise is impressive, and we are excited to be part of their journey towards transforming the housing finance ecosystem in India.”