Ambak has announced the successful closure of a $7 million funding round. This strategic investment underscores the growing confidence in Ambak’s innovative approach to simplifying the home loan process and its potential to make homeownership more accessible to millions across the country.

About Ambak

It is established in 2024 and based in Gurugram. Ambak is an innovative fintech company that acts as a marketplace linking home buyers with distributors and lending to over 50 lending partners across India. The solution platform helps customers during their home loan journey by providing unique solutions according to individual needs. With the aid of technology, Ambak has enabled the home loan process to be transparent, efficient, and user-friendly.

Read also: Method Financial raises $41.5M to Enhance Consumer-Permissioned Financial Connectivity

The Funding detail

The recent funding round was a seed and pre-Series A round, led by Peak XV’s Surge, and joined by Advantedge VC, DeVC (anchored by Z47), and a few angel investors. This diverse group of backers really underscores the broad-based support for Ambak’s mission and business model.

Chief Executive Officer Raghuveer Malik said, “We’re going to be expanding geographically. Now that we’ve realized what we’re doing, we’ve built our tech around it. We plan to operate in over 35 cities in India. The larger part of the geographical expansion, given our current model, won’t be very cost-intensive. The main focus of our fundraise is to remain customer-obsessed.”

Currently present in around eight cities, Ambak plans to scale its operations using the freshly minted capital into more than 35 cities in India. It looks to target more customers as the company wants to reach out to more than 100,000 customers and enable disbursals worth over $1 billion by fiscal year 2026. Ambak feels its technology-led model would allow for cost-effective scaling without incurring exorbitant cost

Housing in India is a rapidly growing market, given its rapid urbanization, growing middle class, and conducive government policies aimed at promoting affordable housing. Home loans in India have always been cumbersome with red tape, opaqueness, and delayed clearances. Ambak will alleviate these challenges with a technology-based platform that can simplify the process of home loans for the end consumer.

Read also: Y combinator backed fintech startup Fazeshift has raises $4M funding

The fintech space in India is characterized as highly competitive, especially in the lending segment, with numerous players competing for market share. Some of the major players include FlexiLoans, Funding Societies, and Lendingkart in the digital lending arena. 

Ambak, however, varies through specializing solely on the home loan market, thereby creating a niche in connecting borrowers with the vast networks of lending partners. It gives a more focused approach and enables Ambak to provide a tailored solution based on the requirements of home loan borrowers.

At the heart of Ambak’s platform is a strong technological infrastructure designed to make the user experience more efficient. The platform utilizes sophisticated algorithms that match borrowers with appropriate lenders, thus streamlining the application process and reducing the time taken to get approval. 

Ambak also offers tools and resources to enable customers to understand their loan options, calculate potential EMIs, and make informed decisions. This emphasis on technology improves efficiency but also enhances transparency, which helps to build trust with customers.

Read also: Juspay raises $150M Funding, Achieving Unicorn Status

Customer-Centric Strategy

Ambak focuses on the fact that customers’ requirements must be completely satisfied while working toward the most hassle-free process to settle home loans. The online portal is designed to support the customers fully from end-to-end in the entire loan application process. 

Thus, through individualized support combined with technology to ease complex processes, Ambak ensures that customers enjoy a pleasant process, which is the foundation of having sustainable long-term relationships and strong repeat business.

Future Perspective

With the new funding of $7 million, Ambak is going to execute its expansion plans and further develop its platform. The company tries to leverage technology to make the home loan process simpler. The mainstream trend of this market is evident, where digital solutions are adopted in the fintech industry to make it more efficient and help bring about a better customer experience. With scaling its operations, Ambak is heading toward a position that would help make homeownership more accessible to a larger segment of India’s population.