Home down-payment assistance startup HomeCapital has raised an undisclosed amount of funding from Venture Catalysts.
The funding round also saw participation from VCats angelsâ€™ Anuj Golecha, Gaurav Gandhi, Ram Joukani, Gaurav Singhvi, Vishal Jhunjhunwaala, Anudeep Jhunjhunwaala, Brijesh Thakkar, Revathi Roy, Jagidsh Gothi, Dipan Dalal, and others.
CapitalHome will use the funds raised to develop its brand, scale up current infrastructure and enhance its product besides entering into strategic tie-ups with financial partners.
Founded by IIM Calcutta alumnus, Lalit Menghani, HomeCapital creates home-ownership opportunities for first time homebuyers through down payment assistance to accelerate their home buying at 0% interest rate through innovative financial structuring.
It currently has a huge market opportunity, catering to 75% of the supply in residential real estate across Delhi-NCR, MMR, Bangalore, Pune, and Chennai. The business model is highly scalable and asset light.
Commenting on the investment, Lalit Menghani, founder of HomeCapital says, â€śThe biggest challenge that first time home buyers face in the Indian housing market is the lack of savings for home down payment. We wanted to solve this massive problem by providing users with interest free down payment assistance to meet home down payment requirements.â€ť
By partnering with various banks, it would also be able to leverage the existing data sets of financial institutions as well as listing platforms.
â€śHomeCapital has a brilliant concept with negligible competitors and great demand which ensures its long-term sustainability. The founder's experience in the complex Indian real estate sector helps drive a unique business model that addresses the core problem of home buyers, which is affordability. I am extremely confident of its success and it can very well emerge to be a transformative force in the Indian real estate lending domain,â€ť says one of the investors Gaurav Gandhi, Director of Essgee Group.