Our investment
Description of the investment.
Description of the investment.
The proposed transaction is a commitment of INR 2,500m as senior secured debt to Ummeed Housing Finance Pvt Ltd in the form of INR denominated non-convertible debentures.
BII’s facility would be directed with 100% of our proceeds to be disbursed to loans secured against solely or jointly women-owned properties whereby a woman must be on the title-deed of the property the loan is secured against and 60% to be directed towards low-income borrowers.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
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How?
| How? |
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BII’s loan will increase access to housing finance through home and home improvement loans for customers, which will contribute to improved living conditions (e.g.,privacy, security, electricity, sanitation) as well as legal and financial asset creation. 2/3 of the low-income and gender books are in housing finance. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Customers – home and MSME owners |
India |
Ummeed serves the informal, self-employed (75%) customers that work in groceries, dairy, chemists, garments and contracting. BII’s loan is expected to be used 60% for low-income borrowers and 100% for female property owners. |
How much?
| Scale | Depth/Duration |
|---|---|
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Through BII’s INR 2.5bn loan, Ummeed is expected to reach around 3,000 customers. |
Depth: Ummeed focuses onlower ticket size, lower income customer segments than competitors suggesting it serves a more underserved customer base. 32% of Ummeed’s customers have had no previous access to formal credit. 89% of customers reported an upgraded experience in water & sanitation. Impact will be deepest for lower income customers that are new to credit. Further, Ummeed offers life, health and property insurance to customers to improve their financial resilience in times of stress. Duration: Impact is expected to be long-term. |
Risk
Unexpected Impact RiskConsumer protection risks given the vulnerability of Ummeed’s target segment are key Drop-Off RiskWhile we have comfort on our impact through BII’s directed lending framework and soft targets, it is possible that Ummeed expands into larger ticket sizes and higher income groups to diversity its portfolio. Ummeed’s competitive advantage and strategy is in this lower-income segment. We are exploring opportunities to provide TA so the Company can find a commercially attractive way to continue to scale business to these segments, rather than relying on the requirements of a lending like BII. Efficiency RiskRisk that despite meeting the hard targets, Ummeed would be slowing down growth to the low-income and gender segments. We take some comfort that this will not happen based on the discussions with management, Company’s track record and the financial incentives BII is offering them (i.e., interest rate subsidy to increase % of low-income and WSME books); however, the residual risk will need to be tolerated. |
Impact score
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Impact score (at point of investment)
The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. The Impact Score shown is based on the 2022-2026 Impact Score methodology. You can find out more here. The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party. |
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5 |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
This is a Low risk rated deal. We agreed an ESAP focused on the development and implementation of an ESMS, strengthening of policies and procedures on OHS and emergency preparedness and response, and establish a documented procedure for handling employee grievances.
Environmental and social risk
Low
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at [email protected]
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Key facts
- First published
:
When the investment was first published on the website database.
- September 2025
- Last updated
:
When the last quarterly update of the website database occurred.
- June 2026
- Project number
:
An identifier number shared by investments in the same project.
- D6730
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- South Asia
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- India
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Financial services
- Sub sector
:
The sub-sector that the investment is made into; this provides a more granular level of detail than the ‘sector’ information
- Specialized Finance
- Investment policy :
- Growth
- Investment type :
- Debt
- Start date :
- June 2025
- Amount :
- $29.19m
- Currency of investment :
- INR
- Domicile
:
The company or investment fund’s place of incorporation.
- India
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
Type of investment portfolio that each investment is made under. Since 2014, we have run two investment portfolios: Catalyst and Growth. In addition, our Kinetic Portfolio enables us to manage concessional investment strategies.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- First published
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Gender and climate finance facts
- 2X gender finance
:
Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.
- Fully qualified
- 2X qualification criteria:
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2X Criteria the investment qualifies under. See 2X Criteria for more information.
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- Leadership — Senior Management
2X threshold 30%: Investee already meets threshold - Indirect/Portfolio
2X threshold 50%: Investee already meets threshold - Governance and Accountability
- Leadership — Senior Management
- 2X sector
:
Indicates the specific 2X sector benchmark the investment qualifies under. See 2X Criteria for more information.
- Financial and Insurance Activities
- 2X country
:
Indicates the specific 2X country benchmark the investment qualifies under. See 2X Criteria for more information.
- India
- 2X gender finance
