Optimo Capital, the sole digital Loan Against Property (LAP) fintech-NBFC in India, has successfully raised ₹150 crore ($17.5 million) in its Series-A funding round, spearheaded by founder Prashant Pitti, alongside current investors Blume Ventures and Omnivore. Approximately 4.8 crore small-business owners, or 75% of the total, lack credit histories, leading to challenges in obtaining substantial business loans from banks and NBFCs. However, many of these entrepreneurs possess valuable yet underutilized assets, such as homes or shops. Optimo enables these MSME business owners to leverage their properties as collateral, facilitating higher loan amounts at lower interest rates compared to unsecured business or personal loans.
Utilizing 77 lakh digital land records and AI-enhanced processes, Optimo swiftly conducts property valuations and title verifications, offering in-principle approvals within hours and disbursing loans in under a week, a process that typically takes four to six weeks. Within just 18 months, Optimo has established a loan book of ₹350 crore and opened branches in 56 cities across Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, and Madhya Pradesh, employing a team of 480. Notably, the company achieved profitability within three months of its launch and has maintained this status for over 15 months, a significant accomplishment in the fintech lending sector.
“Optimo is unlocking India’s largest asset, which constitutes 53% of the nation’s wealth, by enabling property owners to secure loans swiftly through WhatsApp at 7996.796.796,” stated Prashant Pitti, Founder & MD. He also highlighted that India’s Mortgage-to-GDP ratio stands at only 9%, compared to over 50% in developed countries, indicating that the country is not fully capitalizing on its wealth to accelerate GDP growth. Ashish Fafadia, Partner at Blume Ventures, remarked on Prashant’s unique leadership and meticulous execution within financial services, noting that Optimo is creating a model for more substantial and affordable property-backed loans, representing the future of secured lending in India.
Reihem Roy, Partner at Omnivore, mentioned that the mid-ticket LAP market presents a ₹22 lakh crore opportunity, with only 28% currently being addressed. Optimo’s technology-driven approach is well-positioned to meet this demand. Furthermore, Optimo has secured ₹110 crore in debt financing from IDFC and Axis Bank, with plans to engage additional public sector banks and large NBFCs as debtors or co-lending partners in the near future. The company intends to utilize the new capital to enhance its technology and AI infrastructure, foster co-lending partnerships, and expand its footprint in tier-3 regions of India, aiming to address the USD 530 billion credit gap within the Indian market.