Bharat Housing Network, a technology platform for co-lending in affordable housing, has raised Rs 125 crore led by NABVENTURES in a Series A funding, with participation by Varanium NexGen Fund, 9Unicorns, Riverwalk Holdings, SMK Ventures, DMI Sparkle Fund, LC Nueva, and other investors.

Bharat Housing Network, backed by Homeville Consulting, operates on a hybrid capital model and off-balance sheet lending to drive its growth. India’s growing population, rising household incomes, and declining size of the average household are pushing household demands in India.

The housing finance industry is expected to grow at a compound annual growth rate (CAGR) of 13-14 per cent in the long run, with home loan originations expected at Rs 10.4 trillion by financial year 2025 (FY25) and Rs 18.7 trillion by financial year 2030 (FY30).

The co-lending platform enables lenders to build priority sector assets without incurring significant capital and operating expenditure. Gross disbursements in the priority segment through the platform are targeted to reach $500 million in the next three years. Partners on the platform are able to co-lend with faster turnaround times and greater efficiency.

Currently, Bharat Housing Network has onboarded 23 financial institutions and leverages a partner branch network to deliver capital in 200 locations across 12 states in the country.

Since its establishment in 2021, the platform has grown multi-fold while maintaining high-class asset quality with near-zero delinquencies. Bharat Housing Network is enabling financial inclusion by empowering regional players to deliver credit across semi-urban and rural areas. It is focused on delivering housing credit to Tier II, Tier III, and other cities to the low-income group and economically weaker sections of the society.

“Rapid urbanisation has led to an unprecedented increase in the demand for affordable housing. However, the affordable housing shortage has affected millions worldwide, particularly those with low and moderate incomes,” said Rajesh Ranjan, CEO of NABVENTURES.

“In his Independence Day speech, the Prime Minister had mentioned ensuring affordable credit for poor and middle-class housing. Our investment in Bharat Housing Network builds on the stellar efforts of PM Awaas Yojana and other government initiatives to encourage low-cost housing and affordable loans for the same. Bharat Housing Network endeavours to bring down the cost of borrowing for home loan buyers in Bharat’s hinterlands,” Ranjan added.

Bharat Housing Network is NABVENTURES’s seventh investment this year and it intends to invest in at least nine startups by the year-end.

First Published: Nov 09 2023 | 11:33 PM IST