Janasha Finance, operating under the brand LoanKuber, has raised $2.5 million in a debt funding round. The funding round was led by institutional lenders Au Small Finance Bank, Northern Arc Capital, and Vivriti Capital.
The company plans to use the new funding to expand its assets under management (AUM) by around Rs 80 crores. Additionally, it aims to enhance its technological capabilities and strengthen its team, as stated in an official announcement.
Janasha Finance facilitates micro, small, and medium enterprises (MSMEs) and semi-skilled professionals who are overlooked by traditional financial institutions. With an innovative managed marketplace for mortgage lending, LoanKuber, under which Janasha Finance operates, demonstrates a blend of technological innovation and social responsibility.
The company has an automated institutional co-lending platform for mortgages allowing for competitive pricing to the end customer while generating higher yields on its own NBFC balance sheet. It has created hybrid acquisition channels that include a digital connector platform, lead generation platform, and low-cost branches that reduce customer acquisition costs by up to 30 percent. Currently present across NCR, the company aims to expand its AUM to Rs 220 crores by FY25, it said.
The company employs data mining and analytics to unlock the economic value of semi-urban and rural properties in order to improve financial health. Janasha aims to provide access to formal credit for small business owners through unlocking the value of their self-occupied properties. The company underwrites mortgage loans between Rs 3 lakhs – Rs 10 lakhs, primarily for business expansion.
Speaking on the funding, Saurabh Nagpal, founder and CEO, LoanKuber said, “The fresh infusion of funds not only fuels our growth but also reaffirms our mission to enable mortgage lending for our low-income communities. We are committed to empower the underserved MSMEs, and plan to onboard 5,000 MSMEs over the next 18 months as a part of our expansion strategy. In the process we are also eyeing to deliver a profit of Rs 8-10 crores in FY25 for our shareholders.”
Previously, the company has raised $4 million in funding. The Series A round was announced in early 2023 with participation from Inflection Point Ventures, Auxano Accolade Holdings, LetsVenture, PS1 Ventures, Mavuca Capital, Angellist and marquee angel investors, including Prashant Tandon of 1Mg, Pankaj Vermani of Clovia, Ramit Sethi and Vishal Gupta of TA Associates. Prior to that, it raised a pre-Series A round in 2021 from IPV, LetsVenture, AngelList India, and Accolade.
