Nivasa Finance has raised around $3 million (nearly Rs 25 crore) in a seed funding round led by Prime Venture Partners, Blume Ventures and Whiteboard Capital along with participation from angel investors. The Bengaluru-based startup will use the fresh funds to grow its business, enter new cities, and strengthen its field network over the next 12 months.
Nivasa Finance is a tech-enabled home loan distribution platform that connects borrowers with banks, NBFCs, housing finance companies, and small finance banks. The startup mainly focuses on people living in smaller towns and rural areas who often struggle to get loans from traditional banks. The company works through Niketan Financial Services Private Limited, which is a sister concern of Nivasa Capital Private Limited. Both companies are owned by Oka Housing Technologies Private Limited and are based in Bengaluru.
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Helping Borrowers in Smaller Towns
Nivasa Finance is trying to solve a major problem in India’s lending market by helping borrowers from Tier-2, Tier-3, and Tier-4 cities get access to home loans and property-backed loans. Its main customers include self-employed people, gig workers, farmers, and small business owners who usually do not have proper salary slips or formal income proof.
Because of this, many traditional banks reject their loan applications. Nivasa Finance helps these borrowers by collecting documents, checking eligibility, and connecting them with the right lender. This process makes it easier for customers to get loans without facing multiple rejections. The startup offers affordable housing loans and Loans Against Property (LAP) with loan amounts mostly between Rs 5 lakh and Rs 35 lakh. In some cases, the company also supports loans up to Rs 50 lakh. Interest rates range between 9% and 18% per year, while repayment periods can go up to 20 years.
One important feature of the platform is its zero-commission policy for customers. The company does not charge borrowers any hidden fees and instead earns money directly from lending partners. This model helps build trust among customers in smaller markets. Nivasa Finance currently works with more than 10 lending institutions, including Slice Small Finance Bank, Muthoot Housing Finance, Jana Small Finance Bank, and Veritas Finance.
Using a Mix of Technology and Field Support
The startup follows a “phygital” model, which means it combines digital services with on-ground support. Customers can start their loan process through WhatsApp or mobile-based systems, while field staff visit customers to help with documents and verification. This approach is helping the company build trust in smaller towns where many people still prefer personal interaction while taking financial services. Since launch, Nivasa Finance has tested its model in Mysore and Mandya districts of Karnataka and has already helped process hundreds of loans worth more than Rs 20 crore. The company currently has branches in Mysore, Mandya, and Ramanagara.
With the new funding, Nivasa Finance plans to strengthen its partnerships with lenders, grow its field operations, and expand to more locations across India. The company is also planning to apply for its own NBFC licence in the future to increase its role in the secured lending market.
Experienced Founders Leading the Startup
The company has been founded by professionals with strong experience in lending and fintech. Founder and CEO Samit Shetty earlier founded Chaitanya India Fin Credit, which was later acquired by Navi Technologies. He also worked as the first CEO of Navi Finserv and studied at Indian Institute of Management Ahmedabad. Co-founder and CRO Hitesh Saraf has nearly 20 years of experience in digital lending and risk systems. He has previously worked with companies like ZestMoney and SmartCoin. Another co-founder, Nayan Ambali, manages the company’s product and technology operations. He has earlier founded fintech startups like Finzo and Finflux.
According to recent records, the founders together hold more than 66% stake in the company. Nivasa Finance is currently valued at around $13.8 million. As demand for secured loans continues to grow in smaller Indian cities, Nivasa Finance is aiming to expand its reach by combining technology, local support, and transparent lending services.