The Gurgaon-based startup Basic Home Loan recently raised $3.5 million in a funding round led by Venture Catalysts (VCats) and Gruhas Proptech. According to co-founder Atul Monga, the company expects to disburse Rs 1,000 crore every month by March 2023, up from Rs 200–250 crore.
The business will be present in more than 100 cities by 2022–2033, up from about 30 owing to an aggressive expansion plan.
“As the demand for homes is growing, buyers looking for home loan as well. Since most if the buyers are not end users, they always look for home loan,” Monga said.
About 5,000 agents work for Basic Home Loan in 30 cities, and the company plans to partner with builders to offer home loans.
“We have already done some tie ups and in talks with other leading developers. This will help us in getting more leads as developers will send the customers directly to us,” Monga said.
The company has more than 50 lending partners on board, and 70% of the loan falls into the affordable segment.
Other venture capital funds, such as Earlsfield Capital and Good Capital, and Basic’s existing investor, Germany-based Picus Capital, took part in the company’s most recent investment round. An early-stage technological investment company, Picus Capital, invested $500,000 in a seed round in October 2020.
The company disbursed loans of Rs 400 crore in its first 12 months in more than 15 cities.
By March 2022, the company had set a goal to increase employment by more than 300 people and reach a monthly loan disbursal run rate of Rs 200 crore, which it has already met.
“We are confident of meeting the new target as well,” said Monga.