Ummeed Housing Finance has secured Rs 164 crore in a Series D equity funding round from a fund managed by Morgan Stanley Private Equity Asia.
While the existing investor LGT Lightstone Aspada also participated in the latest investment round, Avendus Capital acted as the exclusive financial adviser to Ummeed on the transaction.
The new capital for the Gurugram-based company has come after a gap of around 18 months. Previously, it had raised Rs 72 crore from LGT Lightstone Aspada and Lok Capital in 2018.
To date, the company has managed to secure close to Rs 300 crore in multiple rounds of equity financing.
Ummeed would be looking to deploy these fresh funds to expand into newer geographies, strengthen its technology platform along with a focus on creating state-of-the-art underwriting practices, said an Economic Times report.
Registered with National Housing Bank (NHB) under the National Housing Bank Act, 1987, Ummeed Housing Finance was founded in 2016 by former Citi executive Ashutosh Sharma who had spent 25 years at Citibank, HSBC, and Bank of Montreal.
The company is known to provide home loans and loan against property to lower & middle-income Indian families. It mainly caters to the informal and low-income segment by offering them customized home loans, ranging from Rs 3 lakh to Rs 30 lakh.
The customer can use that loan for the purchase of apartments, construction of homes, home renovations, home extensions, and availing loans against property.
Ummeed majorly operates in the towns of Tier-I and II along with states including Rajasthan, Haryana, Delhi-NCR, and Uttar Pradesh.
Going further, Ummeed is now aiming to double its asset under management to Rs 1,000 crore over the next 12-18 months.