Housing finance startup Altum Credo on Thursday announced concluding its Series C equity round to the tune of $40 million. The company said it raised $27 million in equity and facilitated a partial exit to Series A investors of $13 million. Z3Partners and Oikocredit led the new round with participation from the UK’s development finance institution and impact investor British International Investment.
Existing investors Aavishkaar Capital, Amicus Capital and PS Pai & family (the family office of PS PAI, former Wipro Vice Chairman).
The company said it will deploy the capital to grow its assets under management (AUM) by further enhancing its distribution network and expanding its operational footprint. Altum Credo had raised its Series A round of 9.8 million in 2018 and Series B round of $12 million in 2021.
Speaking on the new round, Vikrant Bhagwat, (Founder) MD & CEO, Altum Credo said the fundraise is a critical milestone for the next phase of sustainable growth and will strengthen the company’s balance sheet enabling effective leverage and sound ALM.
“The company will enhance its distribution network and expand operations in Central and Northern India,” said Bhagwat.
Altum Credo focuses on first-time homeowners with 93 per cent of its customers belonging to the economically weaker section (EWS) or low-income group (LIG) category. This includes a mix of salaried customers (both formal and informal segments) and self-employed proprietors of SMEs largely from low-income groups.
“These customers aspire to own a home, but most have little or no access to long-term credit therefore remaining un/underserved by large financial institutions. Altum Credo aims to bridge this gap by providing long-term finance,” the company said.
“We believe the company is at an inflection point where physical and digital infrastructure comes together to provide industry-leading operational metrics,” said Rishi Maheshwari, Managing Partner, Z3Partners.
As of March 2024, the company claimed AUM of $100 million. The average ticket size of the home loan portfolio of the company is Rs 8.5 lakhs with an average tenure of 15 years. With loan-to-value ratio below 50 per cent, the average value of the properties funded is around Rs 15-25 lakhs by the company.
“Access to quality housing has a multiplier impact on the lives of people particularly children and women in low-income families, also helping them in adapting to rapid climate change. Our investment in Altum Credo aligns with Oikocredit’s “community-focused approach” for access to affordable housing financing,” said Harsh Shah, Principal, Oikocredit.