Ambak, which claims to be India’s fastest-growing fintech marketplace for home loans, on Tuesday announced it raised $7 million in combined seed and pre-Series A funding round led by Peak XV Partners.
The round also witnessed participation from other investors, including Advantedge VC, DeVC, and a network of angel investors.
Simplifying home finance sector
Launched in January 2024 by former leaders of PB Fintech, Freecharge, CarDekho and ZestMoney, Ambak says it aims to simplify a home finance sector valued at $160 billion annually.
The startup notes that even with government programs like the Pradhan Mantri Awas Yojana, borrowers still find the process cumbersome, owing to more than 150 financial institutions offering varied options.
Ambak simplifies this by providing a transparent, three-step process for selecting the right financier, supported by Digital Public Infrastructure (DPI) and bank rule engines.
Ambak’s market presence
Within its first 12 months, Ambak has on-boarded more than 15,000 customers across six states, integrated with 50-plus lenders and built a network of 3,000 builders and brokers.
It also signed an official partnership with the Delhi Development Authority, which is expected to serve up to 35,000 homebuyers in the coming year.
This growth prompted their existing investors with Peak XV as the lead to infuse a further $3.7 Million in January 2025 to co-create new products, build AI tools and expand distribution to all major hubs in India.
Leadership comments
“For a majority of Indians, buying a home is the biggest financial decision they will ever make, yet the process remains overwhelmingly complicated,” Ambak CEO Raghuveer Malik said.
“Ambak’s mission is to distribute $20 billion in home finance annually over the next five years, bringing transparency, affordability and predictability to the market.”
Ashish Agrawal, managing director at Peak XV, added that the mortgage sector is India’s largest credit market, and pointed to Ambak’s strong early traction as evidence the startup is well-positioned to address industry needs.
“We believe they can leverage technology effectively to solve for borrowers, intermediaries and banks,” Agrawal said.
The startup uses technology and integrations with Digital Public Infrastructure (DPI) services to serve both the customer and their lending partners, offering a simple and assisted process for getting a home loan.
“We felt that the distribution of the secured retail lending space, in which home loans is the largest component, was riddled with lack of innovation despite lenders having made monumental upgrades in the last 5 years,” said Rameshwar Gupta, CTO of Ambak, who previously served as the CTO of Freecharge (By Axis Bank). Ambak’s Expansion and Innovation Goals
Planning to expand into 35 cities
Ambak says it will use the raised capital to expand its operations across 35 cities and serve 100,000+ customers, crossing $1 billion in disbursements in FY26. The startup is focused on strengthening its loan comparison tools, developing Vernacular AI bots for better customer outreach, and improving its AI/ML-based loan processing engine.
It is also co-creating products with financiers to expand options and deepen financial penetration across the country.
Source: www.indianstartupnews.com
