NewsVoir
New Delhi [India], March 15: Janasha Finance, operating under the brand LoanKuber, has successfully raised USD 2.5 million in a debt funding round. Led by institutional lenders Au Small Finance Bank, Northern Arc Capital, and Vivriti Capital, Janasha Finance is set to revolutionize the landscape of mortgage lending for India’s underserved sectors. The new funds will catalyze an expansion of the company’s assets under management (AUM), currently at approximately INR 80 crores, and bolster its technological capabilities and team strength.
Janasha Finance is on a mission to empower micro, small, and medium enterprises (MSMEs) and semi-skilled professionals who are often overlooked by traditional financial institutions. With an innovative managed marketplace for mortgage lending, LoanKuber, under which Janasha Finance operates, demonstrates a unique blend of technological innovation and social responsibility.
Championing financial inclusion, Janasha Finance has built an automated institutional co-lending platform for mortgages allowing for competitive pricing to the end customer while generating higher yields on its own NBFC balance sheet. The company has created hybrid acquisition channels that include a digital connector platform, lead generation platform, and low-cost branches that reduce customer acquisition costs by up to 30 percent. Currently present across NCR, the company aims to expand its AUM to INR 220 crores by FY25.
The company employs data mining and analytics to unlock the economic value of semi-urban and rural properties in order to improve financial health. Janasha aims to provide access to formal credit for small business owners through unlocking the value of their self-occupied properties. The company underwrites mortgage loans between INR 3 lakhs – INR 10 lakhs, primarily for business expansion.
Janasha Finance was incepted in 2018 by Saurabh Nagpal, an alumnus of IIT Delhi & Saumya Nagpal, an alumnus of IIM Bangalore, with a mission to serve the underserved MSMEs at the bottom of the pyramid, who lack access to formal mortgage finance.
Speaking on the funding, Saurabh Nagpal, Founder & CEO, LoanKuber said, “The fresh infusion of funds not only fuels our growth but also reaffirms our mission to enable mortgage lending for our low-income communities. Leveraging the power of data mining and analytics, we unlock the economic value of semi/urban rural properties, driving financial well-being for the Next Half Billion. With this financing, we’re well positioned to accelerate our efforts towards building a more inclusive financial landscape.”
“We are committed to empower the underserved MSMEs, and plan to onboard 5,000 MSMEs over the next 18 months as a part of our expansion strategy. In the process we are also eyeing to deliver a profit of INR 8-10 crores in FY25 for our shareholders,” he further added.
Jayesh Shah of Mavuca Capital Advisors said, “We are excited to support Janasha Finance in their mission to revolutionize mortgage lending to underserved communities. There is a pressing need for innovative solutions to address the gap in access to financial services. Janasha Finance is not just filling a gap in the market; it’s rewriting the narrative of financial services for underserved communities.”
Previously, the company has raised US$4 million in funding. The Series A round was announced in early 2023 with participation from Inflection Point Ventures, Auxano Accolade Holdings, LetsVenture, PS1 Ventures, Mavuca Capital, Angellist and marquee angel investors, including Prashant Tandon of 1Mg, Pankaj Vermani of Clovia, Ramit Sethi and Vishal Gupta of TA Associates. Prior to that, it raised a pre-Series A round in 2021 from IPV, LetsVenture, AngelList India, and Accolade.
Janasha Finance is a RBI registered NBFC, founded in 2018 by Saurabh Nagpal and Saumya Nagpal under the brand name of LoanKuber.
Janasha Finance provides mortgage finance to the un-banked/underserved sections of society which is not effectively served by the formal finance system and is known in the market by the name of LoanKuber. Its customers are micro enterprises (Kirana Stores, small Shop owners, Small Manufacturing Units) in peri-urban areas across NCR who lack access to formal income. It provides mortgage loans from INR 3-8 lakh to MSMEs and semi-skilled professionals.
LoanKuber is an automated platform, enabling mortgage lending to micro-SMEs against owned residential collateral. LoanKuber, through its automated platform, makes mortgage lending more accessible and affordable for micro, small, and medium-sized businesses in India, particularly in the National Capital Region, by using technology to streamline processes and collaborating with larger financial institutions.
For more information, visit www.loankuber.com.
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