.png "Weaver Services raises 170M led by Lightspeed and Premji Invest to expand affordable housing finance in tier II and III cities using AI driven underwriting for self employed borrowers in India.")
I am Aadi, an MBA in marketing and finance who has worked closely with early stage fintech and housing ventures. Over the years I have seen how capital flows, technology bets, and market timing decide whether a financial startup fades away or shapes an entire category. This story is about Weaver Services and why its latest fundraise could be a turning point in Indian housing finance.
Summary:
Affordable housing has long been India’s unsolved puzzle. Weaver Services just pulled in 170 million to take a bold swing at it. The money, the strategy, and the tech behind it make this deal worth paying attention to.
1. Weaver Services raised 170 million from Lightspeed, Premji Invest, and Gaja Capital
2. The focus is on acquiring assets, advancing technology, and scaling in tier II and tier III cities
3. The company is targeting underserved segments, especially self employed borrowers
4. Weaver uses AI and alternative data for faster and more inclusive housing loans
5. Competes in a space dominated by HDFC Ltd, LIC Housing Finance, and Aavas Financiers
Picture this. You are self employed, maybe running a small shop in Lucknow or freelancing in Patna. Getting a home loan from a traditional lender feels almost impossible because the system is built around salaried employees with neat pay slips. That is the gap Weaver Services wants to close.
The company just secured 170 million, about 1482 crore rupees, in a funding round led by Lightspeed and Premji Invest with participation from Gaja Capital. Unlike many startups that burn capital on marketing blitzes, Weaver says the money will go into acquiring assets, strengthening its technology backbone, and expanding into smaller cities where the demand for affordable housing is real and rising.
One key move already made was acquiring Capital India Housing Finance as an anchor asset. This gave Weaver an entry point and credibility in a sector that still runs on trust and balance sheet heft. More acquisitions are on the table, and if they go through, it could accelerate growth far quicker than organic expansion.
What sets Weaver apart is its reliance on AI driven underwriting models. Instead of simply judging applicants by salary slips or credit scores, the company uses alternative data. Think transaction histories, business cash flow, even digital behavior patterns. The idea is to create a more inclusive way of assessing risk so that borrowers who were previously invisible to the system finally get access to credit. Faster decisions and fairer evaluations are exactly what self employed borrowers need.
This does not mean the market is wide open. Weaver is entering an arena where big players like HDFC Ltd, LIC Housing Finance, and Aavas Financiers have already built deep roots. What gives Weaver a fighting chance is its technology heavy approach and its clear positioning toward underserved segments. The Indian affordable housing finance market is vast, and tapping into tier II and III cities could unlock millions of new customers who are still waiting for their first mortgage approval.
If the projections are even halfway right, demand in this space will continue to rise as urbanization spreads and home ownership becomes a priority for younger families. The challenge is execution. Technology can help, but running a housing finance business still requires operational discipline, regulatory clarity, and customer trust. Weaver’s bet is that a combination of strong domain expertise, AI tools, and strategic capital deployment can get them there.
5 to Do and Dont for Founders, Investors, and Entrepreneurs:
1. Do focus on technology that solves real customer pain points, not just fancy tools.
2. Do build anchor assets or partnerships that add credibility when entering regulated markets.
3. Do study demand patterns in smaller cities, they often grow faster than metro markets.
4. Don’t expand too quickly without strong local networks in new regions
5. Don’t forget that in housing finance, default risk can destroy balance sheets if not managed early