Introduction:
LoanKuber, a trailblazing mortgage lending platform, has successfully raised $3.5 million in a pre-Series B funding round, giving a significant boost to India’s fintech sector. This latest round of funding, which includes both equity and debt, will accelerate the company’s mission to make mortgage-based financing more accessible for small and medium-sized enterprises (SMEs) in underserved areas. By focusing on empowering micro-entrepreneurs and semi-skilled professionals, LoanKuber is set to reshape the landscape of inclusive finance in India’s growing MSME sector.
A Vision for Financial Inclusion:
LoanKuber was founded in 2017 by Saurabh and Saumya Nagpal with a clear vision: to close the credit gap that plagues India’s micro, small, and medium enterprises (MSMEs). Traditional financial institutions often overlook this crucial sector, so the Nagpals created a technology-driven platform to assess creditworthiness beyond conventional measures.
“The social sector is intricate, and creating real change in underserved communities requires more than just money,” says Saurabh Nagpal, Founder and CEO of LoanKuber. “It requires a deep understanding of the specific challenges these communities face.”
Innovative Approach to Lending:
LoanKuber’s innovation lies in its advanced use of technology to provide mortgage-based financing solutions. The company has created an automated institutional co-lending platform specifically for micro-mortgages. This allows for competitive pricing for customers while ensuring higher returns on LoanKuber’s non-banking financial company (NBFC) balance sheet.
This technological edge, coupled with a profound understanding of the MSME sector, enables LoanKuber to offer loans ranging from Rs 3 lakh to Rs 8 lakh, a critical range for small businesses looking to expand or manage their working capital.
Overcoming Challenges in a Competitive Landscape:
The journey has been challenging. Operating in a sector dominated by traditional banks and larger NBFCs, LoanKuber had to distinguish itself through innovation and a sharp focus on customer needs. The company implemented a hybrid customer acquisition strategy, including a digital connector platform, a lead generation platform, and low-cost branches. This strategy has led to a 30% reduction in customer acquisition costs, making the business more capital efficient.
Empowering Women Entrepreneurs:
One of LoanKuber’s standout initiatives is its policy to include women as co-applicants on 100% of its loans. This forward-thinking approach not only encourages better credit behavior but also supports women’s land rights—an essential step toward gender equality in India’s financial landscape.
The Road Ahead: Scaling Impact:
With this new $3.5 million investment, LoanKuber is on the cusp of significant growth. The company plans to double its assets under management (AUM) from Rs 93 crore to Rs 180 crore over the next year. This growth will be supported by strengthening its technological infrastructure and expanding its leadership team.
“This fresh capital will help us scale our efforts, open new branches, and reach deeper into semi-urban areas in Delhi, Uttar Pradesh, and Haryana,” Nagpal says. “We are committed to building a more inclusive and equitable financial landscape.”
Investor Confidence and Future Projections:
The funding round, led by Singapore-based TRTL Ventures and existing investor Inflection Point Ventures, attracted a diverse group of investors including Auxano, LetsVenture, and Mavuca Capital. Angel investors like Ruchi Deepak of Acko, Prashant Tandon of 1mg, and Pankaj Vermani of Clovia also contributed, showing strong confidence in LoanKuber’s business model and potential.
Looking ahead, LoanKuber aims to achieve an annual revenue of Rs 38 crore by the end of the fiscal year, with a projected net profit of Rs 6 crore. These ambitious targets reflect the company’s strong growth trajectory and the growing demand for its services.
Timeline of Key Events:
- 2017: LoanKuber founded by Saurabh and Saumya Nagpal
- 2023: Raised $2 million from Inflection Point Ventures
- 2024: Secured $3.5 million in pre-Series B funding round
- Next 12 months: Projected AUM expansion to Rs 180 crore
Key Takeaways:
LoanKuber’s journey underscores the enormous potential of technology-driven financial solutions in meeting the credit needs of India’s underserved MSME sector. By combining innovative lending models with a deep understanding of their target market, LoanKuber has carved out a unique position in the competitive fintech landscape.
