BASIC Home Loan: Company Profile

Background

Overview

BASIC Home Loan is an Indian financial technology (fintech) company specializing in digitizing and automating the home loan process. Founded in 2020 by Atul Monga and Kalyan Josyula, the company is headquartered in Gurugram, Haryana, India. Its mission is to make home loans faster, stress-free, and accessible for mid- and low-income households across India. The company operates a digital platform that streamlines home loan applications, documentation, customer verification, and disbursement processes.

Mission and Vision

Mission: To digitize the home loan process for all and increase affordable loan penetration for mid- and low-income households in India through a 'Phygital' approach.

Vision: To make home loans faster, stress-free, and accessible for mid- and low-income households.

Industry Significance

The Indian home loan market is valued at approximately $300 billion and is expected to achieve a compound annual growth rate (CAGR) of 22.5% from 2024 to 2029. BASIC Home Loan plays a pivotal role in this expanding market by leveraging technology to simplify the home loan process, thereby increasing accessibility for underserved segments, particularly in Tier 2 and Tier 3 cities.

Key Strategic Focus

Core Objectives

Digitization of Home Loan Processes: Automate and streamline the entire home loan journey, from application to disbursement, to enhance efficiency and customer experience.

Affordable Housing Penetration: Increase the availability and accessibility of affordable home loans for mid- and low-income households.

Areas of Specialization

Phygital Approach: Combine digital processes with physical agent support to cater to diverse customer needs, especially in regions with limited digital literacy.

Agent Network: Utilize a network of trained agents to assist customers in the loan application process, ensuring personalized support and guidance.

Key Technologies Utilized

Digital Onboarding: Implement eKYC and vKYC processes for secure and efficient customer verification.

Document Verification: Use DigiLocker for authenticating and verifying customer documents, reducing fraud risk.

Loan Processing Platform: Develop proprietary technology to match customer profiles with suitable lenders based on credit policies.

Primary Markets Targeted

Tier 2 and Tier 3 Cities: Focus on expanding home loan accessibility in smaller cities and towns where traditional banking infrastructure is limited.

Mid- and Low-Income Households: Address the financial needs of households seeking affordable home financing solutions.

Financials and Funding

Funding History

October 2020: Seed Round – Raised $500,000 led by Picus Capital.

October 2021: Series A – Raised $3.5 million led by Venture Catalysts and Gruhas Proptech, with participation from Picus Capital, Earlsfield Capital, Good Capital, and angel investors.

June 2023: Pre-Series B – Raised $4.7 million led by Ashish Kacholia, with participation from Gruhas and Venture Catalysts.

September 2024: Series B – Raised ₹87.5 crore (approximately $10.6 million) led by Bertelsmann India Investments and CE-Ventures, with participation from Gruhas, Venture Catalysts, 9Unicorns, Let’s Venture, and Ashish Kacholia.

Total Funds Raised

Approximately $22.6 million across four funding rounds.

Utilization of Capital

The raised capital is intended to:

Technology Development: Enhance and expand the digital platform for improved user experience and operational efficiency.

Market Expansion: Increase presence in Tier 2 and Tier 3 cities to reach a broader customer base.

Agent Network Growth: Recruit and train additional agents to support the growing demand for home loan services.

Pipeline Development

Key Pipeline Candidates

BASIC Home Loan focuses on:

Affordable Home Loan Products: Tailored loan products designed to meet the financial needs of mid- and low-income households.

Balance Transfer Loans: Options for customers to transfer existing home loans to secure better interest rates.

Loan Against Property: Financial solutions allowing customers to leverage their property for additional funding.

Stages of Development

All products are in the active development and deployment stages, with ongoing enhancements to meet customer needs.

Target Conditions

The products are designed to address the financial challenges faced by mid- and low-income households in securing affordable home financing.

Anticipated Milestones

Expansion Goals: Aim to disburse ₹4,000 crore in home loans monthly by the end of FY26.

Agent Network Growth: Plan to hire, develop, and train 25,000 entrepreneurs to support the growing customer base.

Technological Platform and Innovation

Proprietary Technologies

HOM-i Platform: An AI-powered platform designed to streamline home loan processes, enhancing efficiency and customer engagement.

Significant Scientific Methods

AI and Machine Learning Algorithms: Utilized for credit assessment, risk evaluation, and personalized loan offerings.

Data Analytics: Employed to analyze customer behavior and preferences, enabling tailored financial solutions.

Leadership Team

Key Executives

Atul Monga: Co-Founder and CEO. Formerly with PolicyBazaar and Credit Suisse; holds a Mechanical Engineering degree from IIT Delhi.

Kalyan Josyula: Co-Founder and COO. Experienced in corporate finance, strategy, and operations; previously with OLA Cabs, Lazada Group, and Credit Suisse.

Amardeep Sharma: Operations Lead.

Kamaljeet Singh Randhawa: Online Business Lead.

Akshay Purwar: Strategic Alliances Lead.

Prachi Arora: Marketing Lead.

Suraj Rathi: Influencer Business Lead.

Rajan Kumar Singh: FLDG Business Lead.

Yuvraj Kaushik: Company Secretary.

Sonia Thakur: Training & Development Lead.

Vishal Kapdi: Agent Relationship Lead.

Ruchi Shukla: Human Resources Lead.

Sahil Sharma: Banking Relations Lead.

Meenakshi Taheem: Content Lead.

Tarun Joshi: Product Lead.

Yamini Pahwa: Public Relations Lead.

Market Overview and Competitor Profile

The Indian home loan market is experiencing rapid growth, driven by urbanization, rising income levels, and government initiatives promoting affordable housing. Digitalization is reshaping the landscape, with fintech companies like BASIC Home Loan leading the charge in making home loans more accessible.

Competitor Analysis

Homeville: Focuses on simplifying the home loan process through digital platforms.

Easy Home Finance: Offers home loan solutions with an emphasis on customer service and transparency.

Strategic Collaborations and Partnerships

BASIC Home Loan has established partnerships with over 100 banks and financial institutions, including major players like the State Bank of India, ICICI Bank, HDFC Bank, and Axis Bank. These collaborations enhance the company's ability to offer a wide range of loan products and services to its customers.

Operational Insights

BASIC Home Loan's 'Phygital' model, combining digital processes with a widespread agent network, allows the company to effectively serve customers in Tier 2 and Tier 3 cities, where traditional banking infrastructure is limited. This approach provides a significant competitive advantage in reaching underserved markets.

Strategic Opportunities and Future Directions