Housing loan provider Ummeed Housing Finance Pvt. Ltd has secured $76 million, or about ₹630 crore, in Series F funding from A91 Partners LLP, Mirae Asset Venture Investments (India), and Anicut Capital. Existing investor Norwest Venture Partners also participated in the round.
The Gurugram-based company will use the money to expand into central and southern India and invest in technology and processing capabilities.
The latest funding round, which includes nearly ₹300 crore in primary capital, also marked the exit of Lightrock Global Fund S.A., an investor in Ummeed Housing Finance since 2018. Other significant investors in the company include founder Ashutosh Sharma, Morgan Stanley, and CX Partners.
With this latest fundraise, Ummeed has raised a total of $150 million to date.
According to data platform Traxcn, Ummeed had a valuation of $300 million as on 5 April 2024.
DC Advisory India served as the exclusive financial advisor to Ummeed and its existing shareholders for this deal
Founded in 2016 by former Citi managing director Ashutosh Sharma, Ummeed focuses on providing housing loans and small-ticket business loans to individuals in the low and middle-income segments.
The firm says it has disbursed loans exceeding ₹2,800 crore through its network of over 115 branches across tier 2 and tier 3 cities. Managing assets worth ₹1,800 crore, Ummeed aims to support the burgeoning affordable housing finance market in India, projected to reach ₹57,000 crore by 2028.
“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 Ashutosh Sharma, founder and managing director of Ummeed.
Sharma expects the government’s Pradhan Mantri Awas Yojana (PMAY) scheme, which aims to build 30 million rural and urban homes, to significantly boost demand in the affordable housing sector.
In addition to securing funding, Ummeed recently received an upgrade in its credit rating from CARE, moving from ‘A-’/stable to ‘A’/stable. This improvement in rating underscores the company’s solid financial health and growth prospects.
A91 Partners, established in 2018, is a venture investment firm that provides growth capital to entrepreneurial businesses in India. The firm invests across various sectors, including consumer, healthcare, technology, and financial services. A91’s portfolio includes notable firms such as Sugar Cosmetics, Atomberg, and Healthkart.
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