Ambak, a fintech marketplace for home finance based in Gurugram, has raised US$7 million in a funding round that encompasses both seed and pre-series A investments.

The seed round was led by Peak XV’s Surge, with Peak XV Partners also participating in the pre-series A stage alongside Advantage VC, DeVC, and various angel investors.

Founded in 2023, Ambak plans to use the new funding to expand its operations to 35 cities.

The company aims to reach over 100,000 customers and facilitate more than US$1 billion in loan disbursements by the financial year 2026.

Ambak intends to invest in vernacular AI bots to improve customer service and enhance its AI/ML-supported loan comparison tools.

This funding comes amid mixed prospects for India’s fintech sector, which is poised for growth despite a 19% decline in funding for domestic ventures in 2024, dropping from US$3.1 billion to US$2.5 billion.