April 18, 2024: Altum Credo, a tech-led affordable housing finance company, has concluded its Series C equity round to the tune of $40 million. The company has raised $27 million in equity and facilitated partial exit to Series A investors of $13 million. Z3Partners and Oikocredit led the round with participation from British International Investment, the UK’s development finance institution and impact investor, and existing investors Aavishkaar Capital, Amicus Capital and PS Pai and family. Unitus Capital acted as the exclusive financial advisor for the transaction.
Having obtained the housing finance licence in June 2017, Altum Credo is targeting the first-time homeowners. As of March 2024, Altum Credo had assets under management (AUM) to the tune of Rs 830 crore, with 93% of their customers belonging to the economically weaker section (EWS)/low-income group (LIG) category. The company’s technology infrastructure is embedded in its entire loan-lifecycle, facilitating 100% cashless transactions since its inception. The average ticket size of the home loan portfolio is at Rs 8.5 lakh with an average tenure of 15 years. With loan-to-value ratio below 50%, the average value of the properties funded is around Rs 15-25 lakh.
Altum Credo raised its Series A equity funding of $9.8 million in 2018, and Series B equity funding of $12 million in 2021. The company plans to use the proceeds from the current fund raise to achieve AUM growth by further enhancing its distribution network and expanding its operational footprint. Altum Credo’s customer base consists of a mix of salaried customers (both formal and informal segments) and self-employed proprietors of small and medium enterprises who predominantly belong to the LIG segment.
Vikrant Bhagwat, (founder) MD and CEO, Altum Credo, said, “As India traverses towards being a $5 trillion economy, access to affordable housing finance has immense potential to contribute towards this growth. This Series C fund raise is a critical milestone for the next phase of sustainable growth and will strengthen our balance sheet enabling effective leverage and sound ALM. The company will enhance its distribution network and expand operations in central and northern India. With every funding round, we realise our objective towards deepening our resolve to provide accessible and long-term housing finance solutions to those who are still un/underserved.”
Rishi Maheshwari, managing partner, Z3Partners, said, “Vikrant, backed by a seasoned management team, has a stellar track record in financial services and has set in place a strong playbook to scale existing operations. We believe the company is at an inflection point where physical and digital infrastructure come together to provide industry-leading operational metrics. This investment fits into our core thesis of technology being a catalyst to financially empower the underserved segment of Bharat, while also building businesses in a profitable and scalable manner.”
Harsh Shah, principal, Oikocredit, said, “Access to quality housing has a multiplier impact in 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.”
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