A digital-first housing finance team serving customers in a Tier II/III town to expand affordable housing loans.
Chennai, September 13, 2025
A Chennai-based housing finance firm has secured INR 120 crore in fresh equity from two private investors to scale lending to lower- and middle-income households across under-served Tier II and Tier III cities. The capital will push net worth above INR 210 crore and support rapid branch expansion, increased lending capacity and enhancements to digital loan origination and management systems. Since launching operations, the lender has grown quickly, building an AUM of around INR 500 crore and a footprint of 86 branches. The firm targets first-time buyers, self-employed borrowers and smaller-town homeowners with lower-ticket affordable housing products.
Key development: Chennai-based Unico Housing Finance Pvt. Ltd. has received an INR 120 crore equity infusion from two investors to boost its balance sheet and expand lending across underserved Tier II and Tier III cities. The capital is expected to increase the firm’s net worth to more than INR 210 crore, enabling wider branch and product expansion focused on lower- and middle-income households.
The new capital will be used to scale operations in smaller towns, broaden the borrower base among self-employed and middle-income households, and increase loan origination capacity. The company aims to leverage its fully digital operating model to keep turnaround times low while increasing geographic reach and customer volumes.
Unico was incorporated on 11 March 2023 and started operations in December 2023. In roughly 18 months the lender has established 86 branches across seven states and built an assets under management (AUM) base of about INR 500 crore. The business concentrates on affordable housing loans including home construction loans and loans against property, with an average ticket size between INR 13 lakh and INR 15 lakh.
The firm is led by an MD & CEO who previously helped build a housing finance portfolio to an asset base of INR 7,000 crore at a major housing lender. The founders include two industry professionals who set up the business to serve first-time home buyers and borrowers with limited credit history or banking experience.
The equity round was led by an alternative asset manager with a multi-fund debt and equity platform and a second investor that backs early-growth companies in financial services and climate solutions. An independent advisory firm acted as the exclusive financial advisor on the transaction.
Investors view India’s affordable housing finance market as a long-term growth opportunity driven by rising urbanisation and regulatory support. They see room for new lenders that combine regional knowledge, digital processes, and focused risk management to reach households that legacy institutions often struggle to serve with speed and empathy.
The company uses a cloud-native technology stack to expedite loan processing, manage documents, and support collections. The platform includes cloud infrastructure and banking and loan management applications to shorten verification and disbursement times from days to minutes. The lender reports operational gains in uptime, cost control, and faster product rollouts since migrating to the current cloud platform.
Operational claims include rapid disbursement capability and a track record of sizeable loan throughput in a short period. The lender aims to grow assets to become a much larger player in the coming years, with a medium-term target to reach a multi-billion dollar asset book and acquire a six-figure customer base.
In the affordable housing finance segment, Unico operates alongside established specialists that focus on similar borrower cohorts. The market is crowded but still under-penetrated in many smaller towns and semi-urban districts, creating space for niche lenders with fast digital processes and local distribution networks.
Products target self-employed, middle-income and first-time home buyers who need accessible, modest-ticket housing loans and construction finance. The company plans to continue emphasising quick approvals, paperless workflows, and outreach into Tier II and Tier III markets where formal credit for housing remains limited.
The lender is planning a mobile application to engage tradespeople and construction service providers as a community that can generate leads and facilitate home construction projects for customers. The model aims to create a mutually beneficial channel for customers, contractors, and the lender without relying on traditional retail distribution alone.
The company raised INR 120 crore in an equity infusion.
Two investors participated: an alternative asset manager with debt and equity funds and an investor that backs early-growth financial services and climate-focused companies.
Funds will be deployed to scale lending operations across under-served Tier II and Tier III cities, expand branch presence, and increase loan origination capacity.
Primary products are home construction loans and loans against property, aimed at lower- and middle-income households.
The average ticket size ranges from INR 13 lakh to INR 15 lakh.
The lender uses a cloud infrastructure and banking loan management applications to speed up origination, documentation, and collections, enabling near-instant verification and disbursement.
Since operations began, the business reached about INR 500 crore AUM and opened 86 branches across seven states.
| Feature | Details |
|---|---|
| Funding raised | INR 120 crore (equity) |
| Post-funding net worth | Above INR 210 crore |
| Primary use of funds | Scale lending in Tier II and Tier III cities; expand branches and digital capacity |
| Founded / incorporated | Incorporated 11 March 2023; operations from December 2023 |
| Founders | Two founders with housing finance experience |
| Leadership | MD & CEO with prior experience building a large housing finance portfolio |
| AUM | About INR 500 crore (in 18 months) |
| Branch network | 86 branches across seven states |
| Products | Home construction loans; loans against property |
| Average ticket size | INR 13–15 lakh |
| Operating model | Fully digital with fast turnaround times |
| Technology platform | Cloud infrastructure and banking loan management applications to speed processing and ensure data locality |
| Medium-term ambition | Significant AUM growth and acquisition of a large customer base in coming years |
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