Easy Home Finance, a prominent home financing startup catering to first-time homebuyers, has raised $35 million in a funding round led by Claypond Capital, the family office of Ranjan Pai, and the Asia Rising Fund of Japanese financial services giant Sumitomo Mitsui Banking Corporation. The round also saw the participation of existing investors Xponentia Capital, Finsight Ventures, Harbourfront Capital, and Pegasus India Evolving Opportunities Fund.
Founded in 2019, Easy Home Finance has made its mark in the Indian home loan sector by offering affordable housing finance solutions, primarily targeting home loans between Rs 10 lakh and Rs 50 lakh. The company serves first-time homebuyers in suburban and peripheral areas around major cities like Mumbai and Bengaluru, offering a blend of traditional loan structures with innovative digital solutions. With the newly secured funds, Easy Home Finance aims to significantly scale its operations, targeting an ambitious growth trajectory. The company plans to raise its assets under management (AUM) to $300 million, up from the current $90 million, and extend its presence to 150 locations across India. The company currently operates in 90 locations and has already disbursed over 10,000 loans.
The key to Easy Home Finance’s success lies in its seamless, technology-driven approach to loan processing. Leveraging data from government sources for property underwriting and utilising an easy-to-use app for loan sanctioning, the company offers a fully online loan application process. The integration of digital tools in the traditionally paper-heavy home loan process has enabled faster, more efficient loan disbursals, making home loans accessible to underserved communities. The Managing Director of Easy Home Finance, highlighted the company’s commitment to empowering homebuyers by simplifying the borrowing process. “We use digital data to underwrite properties, allowing us to offer instant loan sanctions via our app. This change is empowering underserved communities by offering a simpler, more accessible way to finance their homes,” he said. Easy Home Finance’s customer-centric approach is driven by a strong on-ground presence. Staff visit customers to build trust and collect necessary physical documentation, ensuring a human touch in an otherwise digital process. The company sources 25% of its applications through digital platforms, with the remaining portion coming from collaborations with government agencies and real estate brokers.
The company’s rapid expansion is not just about numbers; it’s about making a significant impact on India’s affordable housing landscape. According to Chokhani, the startup’s approach helps bridge the gap between the underserved and their dream homes, offering a level playing field for people who have historically struggled to access credit. Chief Investment Officer at Claypond Capital, expressed optimism about Easy Home Finance’s ability to disrupt the home financing space. “Easy is enabling real-time credit appraisals, seamless digital property validations, and smooth loan disbursals, making home financing more accessible for everyone,” he said. With the growing middle-class population in India and increasing demand for affordable housing, Easy Home Finance is poised to play a pivotal role in transforming India’s housing finance sector. By focusing on technology and sustainability, the company is shaping a more inclusive future for homebuyers, one loan at a time.
