Fintech start-up Ambak raises $7 million in funding led by Peak XV Partners

Fintech start-up Ambak has raised $7 million in funding through a combination of seed and pre-series A funding.

Funding in the seed round was led by Peak XV’s Surge, and Peak XV Partners doubled down for pre-series A along with Advantedge VC, DeVC, and angel investors.

Founded in January 2024 by executives from Policybazaar, Paisabazaar, Freecharge, and CarDekho, Ambak is a technology-driven marketplace streamlining the home loan process and improving customer and home seller experience in a fragmented, opaque and large ($160 billion/annum) home finance market.

“For a majority of Indians, buying a home is the biggest financial decision they will ever make, but access and affordability continue to be a significant hurdle. Despite 160+ lenders serving all types of customers and properties, customers find it hard to find the right lender and handle the process. Ambak’s mission is to distribute $20 billion in home finance annually in the next five years, while leading the charge to provide transparency and predictability to the home-buying experience,” shared Raghuveer Malik, CEO of Ambak.

Within the first 12 months, Ambak has built their marketplace integrating with 50+ lenders, expanded distribution in 6 States and automated credit processes to serve the needs of 15,000+ customers and 3,000+ intermediaries including builders and brokers, said the company in a statement.

They also signed an industry-first official partnership with Delhi Development Authority (DDA) to serve 35,000+ customers over the next 12 months. This growth prompted their existing investors with Peak XV as the lead to infuse another $3.7 million in January to co-create new products, build AI tools and expand distribution to all major hubs in India.

Ashish Agrawal, Managing Director, Peak XV shared, “Mortgages represent the largest market for credit in India. The founding team at Ambak comes with strong relevant experience and we are impressed with their early execution. We believe they can leverage technology effectively to solve various needs of borrowers, intermediaries and banks in the mortgage market.”