Gurugram based housing finance firm Ummeed Housing Finance has raised Rs 270 crore in a Series E funding round led by Norwest Venture Partners. Existing investor Morgan Stanley Private Equity Asia also participated in the latest round.

The firm had earlier raised $20 million from Morgan Stanley PE Asia in February 2020. The same year in December, CX Partners had acquired a minority stake in Ummeed by acquiring shares from early-stage investors Lok Capital and Duane Park.

Speaking about the fresh capital infusion Ashutosh Sharma, Founder & Managing Director, Ummeed Housing Finance, said, “This round of fundraising gives us clear visibility on the equity front as we are looking to expand our operations, strengthen our technology platform, and enter new geographies.”
The company also stated that it is looking to double its AUM to Rs 1,300 crore over the next 18 months.

“We will also target an addressable credit gap of Rs 37 lakh crore in the business loan segment,” added Sharma said.

Ummeed was founded by banking veteran Ashutosh in 2016. The firm proviedes home loan, business loan, loan against property to lower & middle income indian families based out of urban & semi urban areas. The firm is currently operational in 42 hubs across Rajasthan, Haryana, Delhi NCR and Uttarakhand. So far the company has disbursed over Rs 1,000 crore in loans to more than 12,000 customers.

“The Ummeed team has been able to maintain robust credit despite difficult market conditions and have one of the finest track records of collections in the industry,” said Niren Shah, managing director of Norwest Venture Partners.
“This capital raise is an affirmation of Ummeed’s robust operating model and will position it well to scale further into newer geographies,” said Nirav Mehta, managing director, Morgan Stanley PE Asia.