Funding boost to Ummeed for affordable homes in India

Gurgaon-based Ummeed Housing Finance Pvt. Ltd. (UHFPL) has raised Rs.250 crore in funding from British International Investment (BII), the UK's development finance institution and impact investor, to increase access to low-cost, long-tenure housing finance to low-income households in India.

The funds will be utilized to make mortgage-backed loans available for underserved borrowers, particularly those with unstructured incomes who have been left out of formal credit systems.

Ummeed intends to finance financial inclusion and home ownership, especially among low and middle income households, through this injection. 

Key Highlights:

• Ummeed Housing secures Rs.250 Cr from BII to expand affordable housing loans for low-income families
• The investment will empower 3,000 women with property ownership and financial inclusion
• Funds to support India’s ‘Housing for All’ mission by enabling access to long-tenure, low-cost mortgages

“This BII facility will help us drive the development agenda, leading to the improvement in the quality of life for borrowers and co-borrowers in the low- and middle-income strata of society,” said Ashutosh Sharma, Founder and Managing Director of Ummeed Housing Finance.

The investment also categorizes as a 2X investment, an international effort that supports economic empowerment of women. With this funding, Ummeed will likely empower approximately 3,000 women customers through the facilitation of ownership of property and the development of financial resilience.

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“Affordable and secure housing can be the stepping stone for low-income families to access improved economic opportunities and enhance their livelihoods. By broadening access to housing finance through Ummeed, we are enabling more women to become financially resilient.” said Shilpa Kumar, MD and India Head of BII

So far, Ummeed has catered to more than 33,000 customers and has over Rs.2,400 crore in assets under management. This injection of new capital also aligns with the Indian government's Housing for All mission.