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.
Chennai-based Unico Housing Finance Pvt. Ltd. has secured an equity infusion of INR 120 crore from two institutional investors to scale lending to lower- and middle-income households across India’s smaller cities. The capital round is expected to lift the company’s net worth to beyond INR 210 crore and accelerate branch expansion, product rollout and technology investment aimed at underserved markets.
The funding bolsters Unico’s capital base so it can push into smaller cities where demand for affordable housing finance is rising rapidly. The company focuses on home construction loans and loans against property for self-employed and middle-income borrowers who often face gaps in access from traditional lenders. With the new equity, Unico aims to expand its branch network, increase lending capacity and maintain fast processing through its digital systems.
Founders of the firm are listed as Jayaraman Chandrasekaran and Prabhakaran Arunachalam. The business is led by the Managing Director and Chief Executive Officer, Babu Vellingiri, who previously helped build a major housing finance portfolio to a multi-thousand crore asset base. InteQuant Advisors acted as the exclusive financial advisor to the transaction.
One investor in the round manages a diversified alternative assets platform of several thousand crore and holds stakes across consumer and food brands. The other backer is an early-growth focused fund incubated by a development-oriented firm and targets financial services and climate solutions. Both investors signalled that they view affordable housing finance in smaller Indian cities as a significant growth opportunity driven by urbanisation, regulatory support and rising demand for first-home purchases.
Unico operates on a fully digital platform designed to cut processing time and speed disbursement. The company positions itself as a digital-first lender for borrowers with limited credit history or formal banking relationships. Product offerings include home construction loans and loans against property with an emphasis on quick turnaround and regional underwriting expertise to serve local requirements.
Since launch, Unico has reported growth to roughly INR 500 crore in assets under management and an 86-branch presence across seven states. Management has set multi-year targets to grow AUM substantially and acquire a six-figure customer base over the next five years. The affordable housing finance space already includes several established specialised lenders; Unico plans to compete by combining digital processing, regional reach and product focus for first-time and self-employed home buyers.
The lender emphasises quick loan origination and disbursement enabled by cloud-based systems and banking software to reduce paper-based delays. It is also developing a mobile application to link homeowners with construction tradespeople, intending to build a lead generation community and create additional service paths tied to housing projects.
Demand for affordable housing finance is expanding beyond major metros as incomes rise, migration patterns shift and policy support improves access to credit in smaller cities. Lenders that can combine risk controls with fast digital processing and local underwriting capability are positioned to meet demand among underbanked households seeking their first home or financing for construction projects.
Unico raised an equity round of INR 120 crore from two institutional investors: Anicut Capital and UC Impower.
The funds will be used to scale operations across Tier II and Tier III cities, expand branch presence, strengthen technology and increase lending capacity for affordable housing loans.
Unico offers home construction loans and loans against property, targeting lower- and middle-income households, including self-employed borrowers and first-time home buyers.
Unico follows a fully digital operating model to speed loan processing and disbursement, while combining regional underwriting to serve customers in smaller cities.
Since beginning operations in December 2023, Unico has grown to 86 branches across seven states and around INR 500 crore in assets under management over roughly 18 months.
InteQuant Advisors served as the exclusive financial advisor to Unico for this equity infusion.
| Feature | Detail |
|---|---|
| Funding raised | INR 120 crore (equity) |
| Post-round net worth | Beyond INR 210 crore |
| Primary investors | Anicut Capital; UC Impower |
| Products | Home construction loans; Loans against property |
| Avg loan ticket | INR 13–15 lakh |
| Operating model | Fully digital platform with fast turnaround times |
| Branches & AUM | 86 branches across seven states; ~INR 500 crore AUM |
| Advisory | InteQuant Advisors (exclusive financial advisor) |
| Target markets | Tier II and Tier III cities; self-employed and middle-income borrowers |
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