Mumbai-based startup HomeCapital, which provides interest-free money to homebuyers for down payment, on Monday said it has raised funds from investors, including Varanium NexGen Fund, for business expansion.
The company did not disclose the amount it has raised.
"HomeCapital has raised a funding round led by Varanium NexGen Fund with participation from Venture Catalysts, JITO Incubation and Innovation Foundation, Singapore Angel Network, Venture Gurukool, Shalin Shah among other marquee investors," the company said in a statement.
The company enables aspiring time home buyers accelerate their home ownership through its down payment assistance programme.
The programme provides down payment assistance to homebuyers up to half of their initial costs at zero interest cost. Homebuyers pay back the zero-cost assistance over a period up to 1-2 years.
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HomeCapital supports homebuyers in eight cities including Mumbai, Bengaluru, Chennai, Pune and Kolkata, among others.
"The proceeds of this round will be used to expand operations and scale technology infrastructure," the statement said.
HomeCapital has disbursed nearly Rs 50 crore to homebuyers since its inception in 2007, Its director Lalit Menghani said, adding that the assistance to homebuyers was being provided through financial institutions.
The company earns a fee from banks and developers, he added.
HomeCapital programme has facilitated around Rs 1,000 crore worth housing sales till date.
It is also in pilot stages of HomeNxt - an industry wide home loan co-lending platform. This platform will facilitate the flow of credit to affordable housing and share lending infrastructure among the housing finance companies.
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