Basic Home Loan raises $4.7 million in pre-Series B

A pre-Series B funding round for the fintech business Basic Home Loan, an online mortgage broker, saw an equity investment of $4.7 million.

Equity investor Ashish Kacholia took the lead in the round, and previous backers Gruhas and Venture Catalysts increased their investment.

Additionally participating were new investors Dexter Angels, IIM Indore Alumni Angel Fund, and CommsCredible Venture Fund. The money generated will be use creating a proof of concept for Basic's lending arm as well as expanding Basic's distribution network into new areas.

According to a statement released by the company, Atul Monga, CEO and co-founder of Basic Home Loan, emphasised the company's substantial success in digitising mortgages, with its tech-enabled distribution handling almost 30,000 million applications nationally each month. The business is present in 650 districts and has a network of 7,500 agents. The company's principal investors include Picus Capital, Gruhas, Venture Catalysts, 9Unicorns, Earlsfield Capital, and Good Capital.

Basic Home Loan plans to launch its own lending arm, introduce cutting-edge solutions for underserved areas, and lead the credit industry's digital revolution after achieving EBITDA profitability in March 2023. Monga emphasised the need for a successful proof of concept to be delivered by FY2024 in order to facilitate effective scaling and balance sheet risk management.