Fintech Startup Easy Home Finance Secures $35 Mn, Will Provide Mortgage-Backed Loans To Home Buyers

Easy Home Finance, a lending technology business, has raised $35 million in a Series B funding round headed by Claypond Capital, the investment office of Manipal Group’s Ranjan Pai, and Sumitomo Mitsui’s Asia Rising Fund.

Existing investors Xponentia Capital, Finsight Ventures, Harbourfront Capital, and Pegasus India took part in the round as well.

Claypond Capital’s chief investment officer (CIO) Shyam Powar expressed excitement to collaborate with Rohit and the Easy team to digitize the mortgage business and make homeownership more accessible.

Chokhani founded Easy in 2017 as a home financing startup that uses technology to provide paperless mortgage-backed loans and other financial services to customers.

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In a statement, Easy stated that it will use the new funding to increase its assets under management (AUM) to $300 million during the next 24 months and expand its network to over 150 sites across India.

Sumitomo Mitsui’s India mortgage subsidiary, SMFG India Home Finance Company, will also work with Easy Home Finance to “bring continued affordability and innovation to India’s housing market and contribute to its sustainable growth” as part of the agreement.

“This funding will support our efforts to make home financing more digital, efficient, and accessible.” “We’re excited to bring this transformative approach to underserved communities, allowing more people to realize their dream of owning a home,” Easy Home Finance’s founder and MD, Rohit Chokhani, stated.

Including this round, the Mumbai-based business has raised over $100 million in equity and loan capital to date. It last raised $15 million as part of a Series A financing led by Xponentia Capital in 2021.

The fundraising comes at a time when the Indian lending tech startup ecosystem continues to attract healthy investor interest, despite the continuing funding drought. In September, Bertelsmann India Investments (BII) led a $10.6 million Series B financing for mortgage distribution firm BASIC Home Loan.

Finova Capital, a non-banking financial corporation (NBFC), raised $135 million in its Series E round last month, with participation from Avataar Venture Partners and Sofina. Prior to that, Aye Finance raised INR 250 crore in a Series G funding round headed by Singapore-based impact investor ABC Impact.

According to media reports, India’s loan tech sector is expected to grow to $1.3 trillion by 2030.