Fintech startup Ambak has raised $7 million in funding led by Peak XV Partners to transform home loan financing through AI-powered solutions, leveraging Digital Public Infrastructure to streamline the credit approval process for borrowers.

The round also witnessed participation from Advantedge VC, DeVC, and angel investors. The company aims to simplify home loan financing by integrating with over 50 lenders and leveraging AI-powered solutions to enhance accessibility for borrowers.

Founded by Raghuveer Malik, Rashi Garg, and Rameshwar Gupta, Ambak operates a marketplace for home loans, connecting buyers with banks and non-banking finance companies (NBFCs). The startup has already helped over 15,000 customers and partnered with the Delhi Development Authority (DDA) to assist 35,000 more.

Using Digital Public Infrastructure (DPI) integrations, Ambak has automated the entire credit approval process, significantly reducing turnaround times. Its AI-driven platform enables borrowers to compare financing options more transparently and efficiently.

Ambak Expanding Reach and Technological Innovation

With this fresh capital, Ambak plans to expand into 35 cities to serve 100,000 customers and disburse $1 billion in home loans by FY26. The company is also developing vernacular AI bots to improve customer support and enhance AI/ML-powered loan comparison tools.

“For most Indians, buying a home is the biggest financial decision they will ever make. Yet, access and affordability remain significant challenges. We aim to distribute $20 billion in home loans annually over the next five years while ensuring transparency and predictability for every borrower,” Ambak CEO Raghuveer Malik said.

“Despite over 160 lenders, securing a home loan remains fragmented and complex. We are committed to simplifying home financing by providing predictability and ease to homebuyers,” added Raghuveer Malik.

Market Impact and Future Goals

The startup is co-developing new financial products with lenders to increase its market penetration in the $160 billion home finance sector. Ambak envisions facilitating $20 billion in home finance annually over the next five years by focusing on scalability, technology, and partnerships.

This funding round saw Peak XV Partners reaffirm its support with an additional $3.7 million investment in January 2025. The backing from top investors signals confidence in Ambak’s potential to redefine home loan accessibility in India and beyond.

“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 the various needs of borrowers, intermediaries and banks in the mortgage market,” said Ashish Agrawal, managing director of Peak XV Partners.

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