Varanium Capital leads investment in fintech firm HomeCapital
Team HomeCapital

HomeVille Consulting Pvt. Ltd, which operates the housing-focussed financial technology firm HomeCapital, has raised funding from a clutch of investors.

The round has been led by the Varanium NexGen Fund, an alternative investment vehicle operated by Varanium Capital Advisors Pvt. Ltd. Others that took part include Venture Catalysts and the JITO Incubation and Innovation Foundation.

The Singapore Angel Network, Venture Gurukool, and angel investor Shalin Shah also took part in the funding round, HomeCapital said in a statement. However, it did not disclose the amount it raised.

Bengaluru-based investment bank and advisory firm Unitus Capital acted as the financial advisor to the transaction.

The Mumbai-based company will use the funds to expand its operations and scale its technological infrastructure.

“With this capital commitment, we continue to build a strong business foundation in the housing sector to support aspiring homebuyers,” HomeCapital’s founders said.

HomeVille was incorporated in 2017. Madhusudan Sharma is the company’s co-founder. Its down payment assistance programme helps provide aspiring homeowners with up to half their initial costs at zero interest.

HomeCapital’s services are primarily targeted at millennials who are looking to buy homes but are unable to meet the initial costs owing to a high down payment and initial interest costs.

Separately, Varanium NexGen Fund partner Aparajit Bhandarkar said the firm was confident of its bet on HomeCapital because of its focus on the millennial market and its approach to the real estate sector.

HomeCapital’s services are available in eight cities in the country, including Mumbai, Chennai, Pune and Kolkata. Apart from this, it is also in the process of piloting HomeNxt, its home loan co-lending platform. The company says this platform will help facilitate credit flow to the affordable housing segment.

Deals in the fintech segment

Earlier this month, the small, medium and micro enterprise-focussed Lendingkart raised Rs 319 crore (around $42 million) in its Series D funding round. Existing investors including Fullerton Financial Holdings, Bertelsmann India Investments, Sistema Asia Fund and India Quotient participated in the round.

Also this month, VCCircle reported that online credit management startup CreditMantri is set to raise a little over Rs 6 crore ($803,146 at current exchange rate) from a clutch of existing investors, including Elevar Equity, Chiratae Ventures (formerly IDG Ventures) and funds managed by Accion Labs.

Last month, payments infrastructure platform YAP announced a $4.5 million (around Rs 34.62 crore) fundraise, barely two months after its angel funding round. The exercise was led by Singapore-based Beenext, with participation from 8i Ventures Fund, the DMI Group via its investment vehicle Sparkle Fund, and Better Capital.

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