Fintech startup Ambak, a marketplace for home loans, has raised $7 million in funding through a combination of seed and pre-series A rounds led by Peak XV Partners. Advantedge VC, DeVC, and some angel investors also participated in the round, the company said on January 28.
“For most Indians, buying a home is the biggest financial decision they will ever make. Yet, access and affordability remain significant challenges. Our goal is to distribute $20 billion in home loans annually over the next five years while ensuring transparency and predictability for every borrower," Ambak CEO Raghuveer Malik said.
Founded by Malik, Rashi Garg and Rameshwar Gupta, the year-old startup connects homebuyers with financiers, including banks and non-banking finance companies (NBFCs), to allow them a convenient access to home loans. The marketplace claims to have served mroe than 15,000 customers and partnered with the Delhi Development Authority (DDA) to assist an additional 35,000 homebuyers.
It has integrated with over 50 lenders, automating the entire credit processes, reducing turnaround time and streamlining loan approvals for customers.
The company said it aims to address the fragmented and cumbersome home loan process in India. Despite favourable government policies such as the Pradhan Mantri Awas Yojana (PMAY), the home loan market remains difficult to navigate, with over 160 lenders offering varied options that often leave customers confused.
Malik and Garg previously served as a business heads at firms such as PolicyBazaar, Cardekho and Zestmoney, while Gupta was CTO at Freecharge.
The funds will be deployed to accelerate the startup's expansion into 35 cities, with a target to serve more than one lakh customers and disburse $1 billion in home loans by FY26, it said. The company is also investing in developing vernacular AI bots to enhance customer support and improve its AI/ML-powered loan comparison tools.
It is co-creating new financial products with lenders to deepen its reach in the $160 billion home finance market, the company said.
"Mortgages represent the largest market for credit in India. The founding team at Ambak come with strong relevant experience and we are impressed with their early execution. We believe they can leverage technology effectively to solve for various needs of borrowers, intermediaries and banks in the mortgage market," said Ashish Agrawal, managing director, Peak XV Partners.
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