Unico Housing Finance Pvt. Ltd, a Chennai-based company, has raised ₹120 crore in equity capital through Anicut Capital and UC Implacus Capital. This is a strategic dose that will support the growth of Unico in underserved Tier II and Tier III cities, which will support its mission of democratization concerning home ownership among middle-income and self-employed families.

Risk management and enhanced capital base

The ₹120 crore investment is a turning point in the history of Unico, which drove its net worth over ₹210 crore. The resulting increase in capital base will help the firm expand its operations, expand its presence in the emerging markets, and respond to the increased demand for affordable housing finance. As the housing finance business in India is expected to surpass $100 billion in the next 10 years, Unico is also trying to position itself as an indispensable company in closing the credit gap for first-time home buyers.

Unico has shown a fast rate of expansion, opening 86 branches in seven states in only 18 months, since it was started in December 2023, with assets under management (AUM) of about ₹500 crore. This trend shows the power of its digital-first operating model as well as the unexploited opportunity in the housing finance market in India.

Unico has a unique strategy, which is its strong regional penetration and well-developed risk management system. In contrast to legacy institutions that are usually unable to serve low-income and self-employed borrowers, Unico has developed a lending model that fits in the reality of the Indian informal economy. The company deals with various products- home construction loans, mortgage loans, and ticket size is usually between ₹13 lakh and ₹15 lakh.

The industry-leading turnaround times are possible through the completely digital platform, which streamlines approval of loans, improving customer experience. This technology-powered nimbleness, paired with understanding underwriting, enables Unico to cover the segments that were previously not covered by the formal credit systems.

The partner at Anicut Capital, Dhruv Kapoor, said, “India’s affordable housing finance market is poised to exceed $100 billion over the next decade, driven by rising urbanisation, regulatory tailwinds, and a growing demand for first-time home ownership. Yet, legacy institutions often fall short in serving this segment with agility and empathy. Unico’s differentiated model—combining deep regional insight with robust risk management—positions it as a new-age lender that can unlock real impact while delivering sustainable returns.” 

Quotation Source: YourStory  

Infusion of capital

Anicut Capital, an alternative asset management company that manages more than ₹3,500 crores through debt and equity funds, led this funding round. As the investment in Unico reflects, Anicut is confident in the growth potential and impact thesis of the company, especially regarding its support of high-growth consumer brands such as Milky Mist, Bira, Wingreens, and Blue Tokai.

Babu Vellingiri, a long-time industry veteran, is at the helm of Unico as Managing Director and CEO, having previously grown the housing finance business of Cholamandalam into an AUM of ₹7000 crore through his own efforts. His background in creating top-performing teams and his understanding of regulatory environments have played a significant role in the initial success of Unico. InteQuant Advisors was the sole financial advisor to the transaction, serving to ensure a smooth deal structure that was in line with the long-term growth strategy of Unico.

The capital inflow is at a time when Indian urbanization is taking off, and the ability to afford housing is soaring. Such government programs as PMAY (Pradhan Mantri Awas Yojana) and regulatory tailwinds have provided an environment conducive to innovation and scale by housing finance companies.

Self-employed borrowers and the middle-income households, which Unico concentrates on, are also aligned with the national priorities of inclusive growth. By entering into Tier II and III cities, not only is the company opening new markets, but families are getting to realize the dream of owning a home, which is often their first time.

The Co-Founder and Partner at UC Impower said, “Our investment in Unico reflects our conviction in India’s affordable housing story and in the team’s ability to deliver impact and returns at scale. We look forward to partnering with them as they expand access to housing finance for low-income families that have long been excluded by traditional lenders.”

The Managing Director and Chief Executive Officer, Babu Vellingiri, said, “We are pleased to welcome Anicut Capital and UC Impower as strategic investors in Unico Housing Finance. Their 120 crore investment is a strong endorsement of our vision, our digital-first operating model, and our commitment to expanding financial inclusion through affordable housing solutions.”

Quotations Source: YourStory  

Conclusion

The ₹120 crore capital raise by Anicut Capital and UC Impower of Unico Housing Finance is not only a monetary move, but it is also a tactical support system of a vision based on inclusion, innovation, and impact. With the company expanding its presence and increasing its involvement with underserved populations, it will reinvent affordable housing finance in India. Unico can become a disruptive player in the Indian housing finance market with its strong leadership team, technology-based model, and support of the marquee investors. Unico has provided an interesting roadmap of how financial services can be meaningful and profitable in a market that is ready to be disrupted.