Delhi-based Ummeed Housing Finance Pvt. Ltd has raised $3.5 million (around Rs 23.4 crore) in a Series A round of funding from impact investor Lok Capital and Duane Park. The affordable housing finance company focused on north and central India will use the funding to expand and invest on technology to enhance operating efficiency, it said in a statement.
Ummeed aims to differentiate itself by leveraging technology, including going paperless and using tablets—which can help study customers, run algorithms for credit scoring and disburse loans at a faster pace—at branches. Vishal Mehta, co-founder and partner at Lok Capital, and Anurag Bhargava of Duane Park will join the board of Ummeed. Alok Prasad, former CEO of Microfinance Industry Association (MFIN), will also join as a non-executive board member.