LoanKuber, a digital mortgage platform for Micro-SMEs, today announced that it has raised US$1.25 million as part of its ongoing Pre-Series A round. The current round saw participation from LetsVenture, AngelList India and Accolade. Prior to this round, LoanKuber had raised a seed round of $1Million in 2018.
LoanKuber founded in 2016 by Saurabh Nagpal, an alumnus of IIT Delhi and New York University, who had earlier worked with Lehman Brothers, Nomura and Barclays, provides mortgage loans between 3 to 10 lakhs to Micro-SMEs, semi- skilled professionals and everyday services for business expansion. The current credit gap for MSMEs in India is estimated to be $400 billion. The mortgage fintech company would use the proceeds towards building and expanding the team, enhancing the existing tech stack and rapidly growing the Assets under Management to 75 crores in the next 12 months. LoanKuber provides customized mortgage loans to the underserved MSME’s based on its proprietary underwriting algorithms. The company aims to onboard 1000 MSME’s in the next 12 months as part of its expansion plan.
Commenting on the fund raise, Saurabh Nagpal, CEO LoanKuber said “The funding would enable us to accelerate our mission of providing affordable and transparent mortgage finance to MSMEs, we would strive to achieve our social goals while balancing both growth and profitability that are required to build a large impact focused financial institution”
“Today, around 40 per cent of total MSME credit demand is still served by informal sources of credit. This under-served market is a huge potential for MSME lenders such as LoanKuber to cater to, with their innovative business models tailored specifically to the needs and behaviour of this segment. We at LetsVenture are looking forward to working with Saurabh and the LoanKuber team as they now accelerate their business” Sunitha Ramaswamy, President, Early Stage, LetsVenture
Automated digital operations help LoanKuber significantly reduce turnaround time, which is critical in serving the micro-mortgage customers. The focus on building strong risk models /processes before scaling up has helped LoanKuber navigate the adverse conditions during the pandemic.
Also Read: Ultrahuman scoop up USD 17.5 mn in Series B funding
Social lending Technologies operates digital mortgage lending platform LoanKuber https://www.loankuber.com/ to provide mortgage loans to MSMEs through its group Company, NBFC Janasha Finance and in partnership with other Banks and NBFCs. Sociallending enables mortgage finance for micro-entrepreneurs and semi-skilled financials who do not have access to credit from formal institutions by providing loans between 3 to 10 lakhs for up to 7 years tenor. LoanKuber’s automated mortgage marketplace provides a seamless platform for acquisition, underwriting, disbursal and repayment for micro-mortgage loans.
