Easy Home Finance receives $30 million from SMBC Asia, Claypond Capital, and Investcorp

Easy Home Finance Raises $30 Million Led by Investcorp to Expand in Smaller Towns

Easy Home Finance, a Mumbai-based affordable housing finance company, has raised $30 million in fresh funding, led by global asset management firm Investcorp, with participation from existing investors Claypond Capital (backed by Ranjan Pai) and SMBC Asia Fund.

With this latest round, the company’s total funding has reached $80 million.

Founder Rohit Chokhani said the newly raised capital will primarily be used to expand the company’s loan book and strengthen its presence in smaller towns and emerging markets.

“Currently, we are present in 14 states and 106 cities, and want to go deeper into smaller towns with a population of more than 500,000,” Chokhani told ET.

Focus on Tier-II and Tier-III Markets

Easy Home Finance derives nearly 40% of its business from tier-II and tier-III cities, reflecting its strategy of catering to underserved borrowers outside major metros.

The company operates both:

• Its own lending book, and

• Co-lending partnerships with DCB Bank and Bajaj Finance

Its current assets under management (AUM) stand at approximately Rs 2,000 crore, including both direct and co-lending portfolios.

The company aims to scale this to Rs 3,500–3,800 crore within the next 18 months.

Riding the Housing Finance Boom

Chokhani noted that the broader housing finance sector remains attractive to investors.

“Home finance companies are well capitalised, and investors are keen to fund them as the housing sector in India is growing very fast,” he said.

However, he added that the segment faces unique challenges since home loans typically run for long tenures of up to 20 years, requiring consistent repayment cycles over decades.

Profitability Goals

Founded in 2017, Easy Home Finance has been profitable for the past three years. The company is now targeting stronger returns:

• 3% Return on Assets (RoA) in the next 6–8 quarters

• 4% RoA by 2028

For NBFCs, RoA is a key measure of profitability relative to assets under management.

Tech-Driven Lending Model

The company operates an app-based digital lending platform, automating:

• Loan applications

• Underwriting

• Loan management

Instead of competing with traditional lenders in big metro housing projects, Easy Home Finance focuses on:

• Suburbs of large cities

• Smaller towns

• Government-backed housing schemes

• Middle-income families

This approach positions it strongly within India’s growing affordable housing segment.