With 2021 producing unicorns by the dozens and reigning in record capital from both global and domestic investors, it is only natural that Indian companies have benefitted immensely. Now we are nearing the end of this year and the start of another, and startups continue to raise capital like never before. This time, it is LoanKuber, a digital-first automated mortgage platform, which raised ₹13 crores in a Pre-Series A round.
“LoanKuber is solving a big problem of lending in India. We know that banks are not designed to lend to a majority of the population who often fall into the trap of shady loan apps or sharks who levy high-interest rates and indulge in unethical practices. By digitizing the entire lending process, they have the ability to bring a large no. of loan seekers into a formal credit system and help them build a credit history. We believe MSME lending is still an untapped market and LoanKuber has built the right tech stack to roll out their services for this segment,” said Mitesh Shah, Co-Founder, Inflection Point Ventures. IPV has invested ₹316 crores in 104 deals so far, and LoanKuber is its 44th deal this year. The angel investing platform aims to invest ₹155 crores across over 60 startups by the end of the year.
The round was led by LetsVenture and included participation from Inflection Point Ventures and other investors. According to the startup, the proceeds from the round would be used towards building and expanding its current team, enhancing the existing tech stack, and growing its loan book to ₹75 crores in the next 12 months. The startup also plans to onboard 1000 MSMEs in the next 12 months.
The four-year-old LoanKuber, founded by IIT Delhi Alumni Saurabh Nagpal, is a digital-first automated mortgage platform that provides mortgage loans of ₹3-10 lakhs to semi-skilled professionals, micro-SMEs, and everyday services for business expansion, against owned residential collateral, for a tenure of up to 7 years. It is the lowest cost mortgage lender by having diversified and lowest cost of capital compared to regional MSME lenders, and its automated platform enables the startup to lend with larger financial institutions.
The startup has a presence in 10 cities across NCR – Delhi, Gurgaon, Noida, Faridabad, Pilkhuwa, Hapur, Sonipat, Muradnagar, Baghpat, and Modinagar.
LoanKuber recently raised $1.25 million as part of its Pre-Series A funding and with its experienced management team (which has a combined 60 years of experience in mortgage lending in NCR, plans to solve the US$200 billion mortgage financing gap for Micro-SMEs.