Ummeed Housing Finance raises $76M in Series F equity funding
Housing loans and business loans provider Ummeed Housing Finance is looking to drive its expansion in central and southern parts of India with the fundraise.
Ummeed Housing Finance, a startup that provides housing and secured small ticket business loans, has raised $76 million in a Series F equity fundraise from A91 Partners LLP, Mirae Asset Venture Investments (India), and Anicut Capital.
The funding round also saw participation from existing investor Norwest Venture Partners.
“Housing and business finance to middle and low-income borrowers is a large and important market for India, and we hope to contribute to Ummeed's endeavour to be one of the best companies serving this consumer base,” said Gautam Mago, General Partner of A91 Partners
Founded in 2016 by Ashutosh Sharma, Ummeed operates in seven north and central Indian states. The primary chunk of the funds raised is expected to drive the startup’s expansion into central and southern parts of the country.
"With this equity infusion, we are well-positioned to execute our ambitious growth plan, focusing on housing loans and small ticket business loans for informal income segments, steadily building a granular portfolio that reflects our staunch commitment to inclusive financial solutions," said Sharma.
's latest funding round, which includes nearly Rs 300 crore in primary capital, also marked the exit of Lightrock Global Fund S.A., which had invested in the company in 2018.
DC Advisory India was the exclusive financial advisor to the company and its existing shareholders.
The startup has a strong network of 115 branches across Tier II, III, and IV locations and has disbursed loans amounting to Rs 2,840 crore to over 35,000 customers since its inception. Ummeed currently has assets under management of up to Rs 1,800 crore as of May 2024.
Government initiatives like the Pradhan Mantri Awas Yojana (PMAY) and the Credit Linked Subsidy Scheme (CLSS) have been instrumental in providing subsidies and incentives to first-time home buyers in the economically weaker sections, middle-income groups, and low-income group categories. The company added that about 35% of its housing loan customers have been eligible for these subsidies.
Edited by Affirunisa Kankudti
