Bengaluru: Lok Capital, one of India’s leading impact investor, announces an investment of $3.5 million in series A funding in Ummeed, a Delhi based Housing Finance entity. Duane Park is the co-investor in the investment round. The funding will boost the expansion plans and technological deployment of Ummeed in order to achieve higher operational efficiency. Following the investment, Vishal Mehta, Co-Founder & Partner, Lok Advisory Services, and Anurag Bhargava of Duane Park join Ummeed’s advisory board, and Alok Prasad, Ex-Mortgage Head at Citi Financials and Ex-CEO of MFIN, will join as a Non-Executive Board Member at Ummeed.
Speaking about the latest funding, Ashutosh Sharma, Founder, Ummeed, proclaims, “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. We also realize that technology will give us the leverage to address needs of a large share of this low income segment. The funding from Lok and Duane Park will help us bolster our technology platform and accelerate our expansion plans”.
Incorporated in January 2016 by Ashutosh Sharma, Ummeed is headquartered in Haryana. The entity segregates itself from others in the field by leveraging technology, including going paperless and using tablets, which help study customers, run algorithms for credit scoring and disburse loans at a faster pace at branches.
Announcing the investment in Ummeed, Vishal Mehta, Co-Founder & Partner, Lok Advisory Services asserts, “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. Ummeed’s approach to marketing with a hub-spoke strategy and a conscious focus to build a technology savvy company will enable this. Ummeed is backed by an extremely capable and credible founding team which straddles superior operating and capital raising experience. We are excited to partner with them”.