Easy Home Finance raises $35 million in funding led by Ranjan Pai’s Claypond Capital

Mumbai-based home financing firm Easy Home Finance has raised $35 million in a Series B funding round led by Claypond Capital, the family investment office of Ranjan Pai.

Ranjan Pai is a prominent figure from the Manipal Group and has a net worth of over $2.7 billion, as per Forbes.

Besides Pai, Sumitomo Mitsui Banking Corporation’s Asia Rising Fund also participated in this round. 

The firm, which specializes in digital-first home loans for middle-income customers, has now raised over $100 million in total through a combination of equity and debt.

Participation from existing investors

Existing investors Xponentia Capital, Finsight Ventures, Harbourfront Capital, and Pegasus India Evolving Opportunities Fund participated in this funding round.

Shyam Powar, Chief Investment Officer of Claypond Capital, expressed enthusiasm for the company’s mission, stating, “We are excited to join forces with Rohit and the Easy team in this mission to digitize the mortgage industry, ensuring that more individuals can realize their dream of homeownership.”

Plans for growth and expansion

With the newly acquired funds, Easy Home Finance aims to increase its assets under management (AUM) to $300 million over the next two years.

The firm also plans to expand its operational reach, targeting more than 150 locations across India. This broader network will cater to a growing demand for accessible home financing solutions in the country.

“The fundraise will be used for our asset book building, aiming to reach approximately $300 million in assets in the next 24 months,” said Rohit Chokhani, Managing Director of Easy Home Finance.

Technology-driven approach to home financing

Founded in 2018, Easy Home Finance has integrated technology into its mortgage services to streamline the process for customers. Through its proprietary prop-tech and credit-tech platforms, the firm can deliver quick and seamless loan disbursals, often within minutes.

According to Chokhani, some clients have completed the entire process, from loan origination to moving in, on the same day.

He said that the firm primarily targets buyers who need home loans between Rs 10 lakh to Rs 50 lakh in the peripheries of major cities like Mumbai and Bengaluru.

Financial performance and market context

Easy Home Finance has experienced notable growth over recent years. In the fiscal year ending March 2024, the company reported a 90% increase in revenue, reaching Rs 63.73 crore compared to Rs 33.38 crore in the previous year.

It claims to have disbursed over Rs 500 crore in loans, facilitating homeownership for approximately 5,000 families. The firm’s profitability also improved, with profits rising by 10.8% to Rs 5.23 crore.