Private equity-supported housing company Ummeed Housing secures $28 million in investment from an international financier
Ummeed Housing Finance Secures $28 Million Investment for Affordable Housing
Ummeed Housing Finance, a Gurugram-based company, has secured an investment of approximately Rs 250 crore ($28 million) from British International Investment (BII), the UK’s development finance institution and impact investor. This investment will be utilized to provide long-tenure, mortgage-backed loans aimed at low-income and underserved borrowers across India.
Established in August 2016, Ummeed Housing focuses on providing finance to underbanked customers from tier-II to tier IV cities, with informal income and limited or no credit history. The company serves over 33,000 customers across 9 states through more than 130 hubs.
The investment qualifies under the 2X Challenge, a global initiative to channel capital into projects that empower women. This investment will particularly focus on empowering women to become homeowners, targeting up to 3,000 female customers through these loans.
Ummeed Housing's net profit for FY25 rose to Rs 59 crore from Rs 53 crore a year ago, and the total managed assets of the company increased to Rs 2,362 crore from Rs 1,828 crore over the same period. In 2024, BII's new commitments to India across asset classes more than doubled year-on-year to £364.6 million (Rs 4,206 crore). This took BII's portfolio value in India to $2.45 billion by the end of calendar year 2024.
Ashutosh Sharma holds an 18.3% stake in Ummeed Housing on a fully-diluted basis, while Norwest Capital owns 23.5%, Morgan Stanley owns 19.0%, A91 Partners owns 15.5%, Thyme owns 10.8%, and other investors own the remaining 12.9%.
The funds raised by Ummeed will be used to expand access to affordable housing finance in urban and semi-urban areas, addressing critical gaps in formal credit availability for low- and middle-income families, many of whom have informal incomes. The main focus of these loans is to empower borrowers through property ownership and financial inclusion.
BII has investments in over 1,600 businesses across 70 countries and total net assets of £9.87 billion. The company primarily operates in northern and western India through a network of 142 branches across nine states and union territories.
In 2024, Ummeed Housing last raised equity, securing around $76 million in a Series F funding. The loans will support homeownership, as stated in a press release issued by Ummeed Housing on Tuesday.
- Ummeed Housing Finance intends to use the newly secured $28 million investment for investing in the real-estate sector, specifically towards providing finance for affordable housing in urban and semi-urban areas.
- The business strategy of Ummeed Housing Finance, following their $28 million investment, will involve focusing on investing in low-income and underserved borrowers, with a particular emphasis on empowering women to become homeowners.
