Ummeed Housing Finance announced an equity fundraise of approximately Rs 630 crore (~USD 76 million) in its Series F round, with participation from A91 Partners LLP, Mirae Asset Venture Investments (India), Anicut Capital and existing investors Norwest Venture Partners.
The funding includes primary capital of around Rs 300 crore, aimed at fueling the company’s expansion in central and southern India. Additionally, the round facilitated an exit for Lightrock Global Fund S.A., which had invested in Ummeed in 2018.
Ummeed Housing Finance specialises in providing affordable housing loans and secured small-ticket business loans to self-employed individuals in low and middle-income categories. The company operates a network of 115 branches in tier 2, 3, and 4 locations across northern and central India, managing assets exceeding Rs 18 billion as of May 2024.
The firm has reported a growth rate of approximately 60 per cent CAGR since its inception, emphasizing high asset quality and expanding its liability franchise.
Talking about the transaction, Ashutosh Sharma, Founder and MD of Ummeed Housing Finance said, “We welcome our new partners – A91 who are catalysing Indian entrepreneurs in the consumer, technology, and financial services space and Mirae, Asia’s leading asset manager who are investing through their India focused fund. Existing investor Norwest Venture Partners also re-invested in this round showcasing trust and believing in the vision of Ummeed. 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. As we set out on this exciting chapter together, I am confident that we will remain dedicated to serving the underserved communities while maintaining consistency in growth and asset quality, thus creating lasting value for all stakeholders.”
Gautam Mago, General Partner of A91 Partners said, “We are glad to partner with Ashutosh and the Ummeed Housing Finance team. We admire the company they have built over the last 8 years and the credit quality they have maintained. Housing and business finance to middle and low-income borrowers is a large and important market for India, and we hope to contribute to Ummeed's endeavour to be one of the best companies serving this consumer base”
Ashish Dave, CEO of Mirae Asset Venture Investments (India) Private Limited said, “We believe that housing is one of the essential needs of every person and is a key driver of economic progress. Ummeed caters to the large and underserved middle- and low-income borrower segment. Ashutosh and the team at Ummeed have remained focused on maintaining strong asset quality and balancing it with strong growth since inception. We are excited to partner with the team at Ummeed in their next leg of growth”
