Mumbai-based Easy Home Finance has raised $30 million in a funding round led by global asset management firm Investcorp. Existing investors, including Ranjan Pai’s Claypond Capital and SMBC Asia Fund, also participated. This investment brings the total funding to $80 million.
In an interview with RealtyDailyNews, founder Rohit Chokhani stated that the funds will mainly be used to expand their loan offerings and strengthen their presence in smaller towns.
“Currently, we operate in 14 states and 106 cities. Our goal is to penetrate deeper into smaller towns with populations exceeding 500,000,” Chokhani stated.
Easy Home Finance not only manages its own loan book but also collaborates with DCB Bank and Bajaj Finance for co-lending initiatives.
Currently, 40% of the company’s business comes from tier-II and tier-III cities. Its assets under management (AUM) amount to approximately Rs 2,000 crore, including both co-lending and direct lending operations. Chokhani is aiming for a loan book growth to Rs 3,500-3,800 crore within the next 18 months.
“Looking at the broader perspective, home finance companies are well-capitalized, and there is strong interest from investors as the housing sector in India is expanding rapidly,” he remarked.
While the sector is experiencing growth, many fintech lenders have yet to see multiple payment cycles on their assets. These long-term loans, typically lasting around 20 years, require servicing over two decades.
“Our company has been profitable for the past three years. My goal is to achieve a return on assets (RoA) of 3% within the next six to eight quarters, aiming for 4% by 2028,” Chokhani added.
For a non-banking financial company (NBFC), the RoA indicates the profitability of its AUM.
Founded in 2017 by Chokhani, Easy Home Finance operates an app-based lending platform that automates applications, underwriting, and loan management. Since it cannot compete with large metropolitan lenders financing significant housing projects, it focuses on the suburbs of major cities and smaller towns. The company also provides loans for government-backed housing initiatives aimed at middle-income families who qualify for government housing schemes.
