Housing Finance Startup Nivasa Finance secures fresh capital from top investors to strengthen secured lending and reach underserved borrowers in India

A Big Boost for India’s Housing Finance Sector

Bengaluru-based housing finance startup Nivasa Finance has raised ₹25 crore (around $3 million) in a seed funding round, marking a strong vote of confidence in its mission to expand access to affordable housing loans and secured credit across India.

The round was led by prominent venture capital firms including Prime Venture Partners, Blume Ventures, and Whiteboard Capital, along with participation from angel investors.

The fresh capital will help the startup scale its operations, deepen lender partnerships, and expand its reach in non-metro and rural markets.

About Nivasa Finance: Bridging the Credit Gap in Bharat

Founded in 2025 by Samit Shetty and Hitesh Saraf, Nivasa Finance is building a tech-enabled secured lending distribution platform focused on underserved borrowers.

The startup connects borrowers with banks, NBFCs, housing finance companies, and small finance banks, helping them access home loans and loans against property (LAP) more easily.

Its core mission is to solve a major challenge in India’s credit ecosystem—millions of borrowers in semi-urban and rural areas struggle to access formal financing due to limited documentation and verification issues.

The Problem: India’s Underserved Housing Credit Market

India’s affordable housing segment, especially loans under ₹25 lakh, represents a massive demand opportunity. However:

  • Many borrowers lack formal income proof
  • Property documentation is often incomplete
  • Traditional banks struggle to assess creditworthiness
  • Demand from rural and semi-urban India remains underserved

This creates a large credit access gap, which Nivasa aims to solve through a hybrid model of technology and field execution.

The Solution: Tech + On-Ground Loan Fulfilment Model

Nivasa Finance operates as a full-stack loan distribution and fulfilment layer, combining:

  • Digital onboarding via apps and WhatsApp
  • Remote borrower assessment
  • Documentation assistance
  • Lender matching systems
  • Doorstep support through field agents

This approach improves loan conversion rates while making borrowing simpler for customers in non-metro regions.

The company currently works with 10+ lending partners, including banks, NBFCs, SFBs, and HFCs, enabling faster loan disbursal across pilot regions like Mysore and Mandya in Karnataka.

Growth Traction and Early Performance

Since its launch, Nivasa Finance has already:

  • Facilitated hundreds of loans
  • Disbursed over ₹20 crore in credit
  • Built a strong field network in South India
  • Developed digital-first borrower journeys for accessibility

This early traction highlights growing demand for structured housing credit in rural India.

Funding Details and Investor Confidence

The ₹25 crore seed round signals strong investor belief in the company’s model and market opportunity.

Investors include:

  • Prime Venture Partners
  • Blume Ventures
  • Whiteboard Capital
  • Angel investors

Investors believe Nivasa is building critical infrastructure for secured lending in underserved markets, especially as India’s housing demand continues to expand beyond metros.

Where the Funds Will Be Used

The startup plans to use the fresh capital for:

  • Expanding into new geographic regions
  • Strengthening distribution and field execution networks
  • Building deeper partnerships with lenders
  • Enhancing technology platforms
  • Scaling operations over the next 12 months

It is also exploring the possibility of obtaining an NBFC licence to further strengthen its position in the lending ecosystem.

Founder Vision: Expanding Financial Inclusion

Co-founder Samit Shetty highlights that India’s challenge is not a lack of credit demand, but limited access to structured mortgage systems for underserved borrowers.

The startup aims to unlock financing for people who are already building homes but remain outside formal credit systems due to documentation barriers.

Key Takeaway

Nivasa Finance’s ₹25 crore funding round reflects growing investor interest in affordable housing finance startups that target India’s vast underserved credit market. With a hybrid model of technology and on-ground execution, the company is positioning itself as a key player in bridging India’s housing finance gap.