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Lok Capital invests $3.5 million in Ummeed Housing
BENGALURU:Lok Capital has led a funding round of $3.5 million in Ummeed, a Delhi-based Housing Finance company focused on affordable housing in North and Central India. This is the maiden investment from Lok’s third fund. Delhi-based private company, Duane Park also participated in this round.
The institutional funding will be used to expand as well as boost deployment of technology towards greater operating efficiency. Vishal Mehta, Co-founder & Partner, Lok Advisory Services and Anurag Bhargava of Duane Park will join the board of Ummeed.
The potential of the Indian housing finance segment is pegged at $135 billion, according to a Monitor-Deloitte study. However, the portfolio of existing affordable housing players is only $1 billion.
Founded in January 2016 by Ashutosh Sharma, who has over 25 years of experience working at Citi, HSBC and Bank of Montreal, Ummeed focuses on providing housing finance access to families with low, informal income. The company is backed by a team of ex-Citibank professionals. The operating team consists of professionals with extensive small-ticket mortgage experience at AU Housing, Magma.
“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 lakhs, making them highly dependent on local money lenders. We want to change this by offering an easier, more reliable option for loans,” said Ashutosh Sharma, founder, Ummeed.
The company is currently operational in East-Delhi and plans to have 11 branches operating across North and Central India. It said it is targeting 1500 customers in the next 12 months.
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, ” said Vishal Mehta, co-founder and partner at Lok Advisory Service.
This is Lok Capital’s third investment in this sector. It had earlier invested in affordable housing finance group Aptus and self-employed woman association group, SEWA Grih Rin.
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