[Funding Alert] BASIC home loan raises $ 500,000 during fundraising
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BASIC Home Loan, a subsidiary of Basic Enterprises Pvt, based in Gurugram. Ltd raised $ 500,000 as part of a funding round from Picus Capital, a German-based early stage technology investment company.
The vision of the startups is to digitize the home loan process and increase the penetration of affordable loans for middle and low income households in India. It aims to use the “Phygital” approach to create a network of agents who use BASIC technology to support consumers, from “research” to “final disbursement” of home loans.
“We want to make the home loan process faster, stress-free and simpler for consumers. During a home loan process, especially for affordable housing, a customer has to go through multiple points of contact, which is painful. We strive to ensure that our technical agent accompanies them throughout this execution process, from “documentation” to “disbursement” as a single point of contact. With the support of Picus Capital’s funds and ecosystem, our goal will be to change the way Bharat (India) finances its affordable housing, ”said Atul Monga, Co-Founder and Managing Director of Basic Home Loan.
In its first month of operation, the institution has taken out $ 6 million in loans to Indian borrowers and has sanctioned $ 3 million so far. It aims to cross $ 60 million in loan disbursements in the first year of operation. Currently, she is setting up distribution and sourcing applications for lenders but wants to create her own book of affordable, term home loans.
“We believe that Basic Home Loan has a very unique proposition for solving a very basic problem that consumers face, namely quick access to formal financing for the purchase of an affordable home in India. Their platform will bring transparency to buyers of affordable homes and better decision making when choosing their finances. The Indian loan market offers enormous automation opportunities and we are keen to help Basic Home Loan realize this potential to the full, ”added Oliver Heinrich, partner of Picus Capital.
BASIC was co-founded by Atul Monga and Kalyan Josyula with Pranav Khattar and the three have worked with companies such as Policybazaar.com, Ola, Lazada, Credit Suisse, HDFC Life, Wadi.com in the past.
According to estimates from the Reserve Bank of India (RBI), the current size of the mortgage market is around $ 250 billion and is growing by 20% year over year. The government’s vision is to provide “housing for all” by 2022. This translates to 20 million additional housing units for LIG and EWS households to be built by 2022. BASIC Home Loan believes that there is a large opportunity to tap into this underserved segment by leveraging technology.