NEW DELHI: Lok Capital-led fund has invested USD 3.5 million (nearly 23 crore) in Delhi-based Ummeed Housing Finance, which will use the funds for expansion.
“This is the maiden investment from Lok’s third fund. Duane Park is a co-investor in this investment round,” Lok Capital said in a statement.
The institutional funding will fuel Ummeed’s expansion plans as well as boost deployment of technology towards achieving greater operating efficiency, it added.
“The funding from Lok and Duane Park will help us bolster our technology platform and accelerate our expansion plans,” said Ashutosh Sharma, founder, Ummeed.
Vishal Mehta, co-founder and Partner, Lok Advisory Services, said that while there is a large unaddressed market in affordable housing finance, “to make a significant impact and build an efficient, scalable model and 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 allow this, he said.
Ummeed offers customised home loans, ranging from Rs 3 lakh to Rs 25 lakh, to suit customer requirements, including purchase of apartments, construction, home improvements and extensions and availing loans against property.
Lok manages three funds with over USD 125 million under management.