Housing finance platform Nivasa Finance has successfully raised ₹25 Crore, approximately $3 million, in its seed funding round. The investment was led by Prime Venture Partners, with significant participation from Blume Ventures, Whiteboard Capital, and a group of angel investors. This capital injection will fuel the company's mission to enhance access to secured housing credit for underserved borrowers across non-metro India.
Bridging the Credit Gap in Housing Finance
India's affordable housing loan segment represents a massive ₹1.4 trillion annual market, yet a significant portion of demand remains unmet. Borrowers in this category, often self-employed or gig workers, lack formal income documentation, making them difficult to underwrite through traditional systems. Lenders also struggle with sourcing verified, loan-ready customers from these markets, which limits the distribution of affordable home loans.
Nivasa Finance addresses this gap with a full-stack distribution and fulfillment platform designed for non-metro markets. The company supports borrowers throughout the entire loan journey, from initial assessment and documentation to lender matching and final disbursal. Its hybrid model effectively combines technology-driven workflows with essential on-ground field execution to streamline the process for all parties involved.
Strategic Allocation of New Funds
The newly acquired capital is earmarked for significant strategic growth over the next twelve months. Nivasa Finance plans to expand its geographical footprint, strengthen its distribution network, and deepen its partnerships with banks and other financial institutions. The company is also actively exploring the possibility of securing a Non-Banking Financial Company (NBFC) license to enhance its role in the ecosystem.
Since its launch in 2025, the Bengaluru-based startup has already demonstrated considerable progress by facilitating loans worth over ₹20 crore. Piloting its model in the Mysore and Mandya districts of Karnataka, Nivasa has established partnerships with more than ten lending partners. This initial success showcases the viability of its model in connecting underserved borrowers with formal credit for building homes.
An Innovative Technology-First Approach
Distinguishing itself from traditional methods, Nivasa leverages a combination of remote onboarding, assessment, and matchmaking with personalized doorstep service. The startup has developed customer-facing digital interfaces, including WhatsApp-led and app-based journeys, to simplify the process for borrowers. This tech-enabled approach significantly improves conversion rates and enhances the experience for both borrowers and lenders.
A core tenet of Nivasa's strategy is its emphasis on transparency and a zero-commission approach for its customers. This model directly addresses long-standing trust issues prevalent in the loan distribution segment. By making the credit journey more accessible and efficient, the company is building a more reliable and customer-centric platform for secured lending.
Experienced Leadership and Investor Confidence
The company is led by founders Samit Shetty and Hitesh Saraf, who bring a wealth of experience from the microfinance and digital lending sectors. Samit Shetty previously founded Chaitanya India Fin Credit, which was later acquired by Navi Technologies. Hitesh Saraf has an extensive background in building digital lending and underwriting systems, providing a strong foundation for Nivasa's mission.
Investors have expressed strong confidence in Nivasa's vision and execution capabilities, highlighting the company's potential to build critical infrastructure for expanding access to secured finance. The founding team's deep on-ground understanding combined with their technological expertise was a key factor in securing the investment. This backing from prominent venture capital firms underscores the market's belief in their approach to solving a persistent credit problem.
This seed funding round marks a pivotal moment for Nivasa Finance, empowering it to scale its innovative model and address a critical need in India's housing market. The investment not only validates the company's approach but also signals a growing investor appetite for fintech solutions that formalize credit for the underserved. As Nivasa expands, it is well-positioned to drive significant transformation in affordable housing finance across the nation.