Ummeed Housing Finance raises $3.5 million in funding
The company is focused on affordable housing in North and Central India and provides housing finance access to families with low, informal income.
Delhi-based Ummeed Housing Finance has raised USD 3.5 million in ‘Series A’ round of funding from Lok Capital and Duane Park.
The funding will fuel company’s expansion plans as well as boost deployment of technology towards achieving greater operating efficiency.
Founded in January 2016, the company is focused on affordable housing in North and Central India and provides housing finance access to families with low, informal income. The company is backed by a team of ex Citi Bank professionals, who have solid foothold in commercial banking, credit and mortgage.
Ashutosh Sharma, Founder, Ummeed said, “Families that have semi-formal or informal incomes and comprise the bottom-of-the-pyramid, remain largely under-served by housing finance companies and banks. This is especially true when the loan requirement falls below Rs 10 lakh, making them highly dependent on local money lenders. We want to change this by offering an easier, more reliable option for loans. We also realise that technology will give us the leverage to address needs of a large share of this low income segment.”
The potential of the Indian affordable housing finance segment is pegged at Rs 8.8 trillion (USD 135 billion), according to a Monitor-Deloitte study commissioned by World Bank and the National Housing Bank.
This is the maiden investment from Lok Capital’s third fund and Duane Park is a co-investor in this investment round. Vishal Mehta, Co-founder & Partner, Lok Advisory Services and Anurag Bhargava of Duane Park will join the board of the company.
Vishal Mehta in a statement said, “While there is a large unaddressed market in affordable housing finance, to make a significant impact and build an efficient, scalable model, depth of reach is key. Ummeed’s approach to marketing with a hub-spoke strategy and a conscious focus to build a technology savvy company will enable this.”
Anurag Bhargava of Duane Park said, “Duane Park is excited about partnering with Ashutosh and his superb team, all of whom have extensive experience in affordable housing finance. The market is growing and dynamic, and Ummeed will emerge as a leader through its organic growth strategy and partnerships.”
Lok Capital has identified affordable housing finance as a crucial component of financial inclusion as it creates a stable and long-lasting asset for a family, apart from significantly improving their standard of living.