The company stated that it raised $27 million in equity and facilitated a $13 million exit for Series A investors. Altum Credo intends to use the new capital to increase AUM by further improving its distribution network and increasing its operational presence in central and northern India. As of March 2024, the company had an AUM of INR 830 Cr and 93% of its customers were from the economically weaker portion or low-income group.
Altum Credo, a housing finance startup, has raised about $40 million (INR 334 crore) in its Series C fundraising round, co-led by Z3Partners and Oikocredit, with participation from British International Investment and other previous investors, including Aavishkaar Capital and Amicus Capital.
The company stated that it raised $27 million in equity and facilitated a $13 million exit for Series A investors.
Altum Credo intends to use the new capital to increase AUM by strengthening its distribution network and increasing its operational reach. The investment will also assist the company remain well-capitalised in the short term and promote growth, according to the statement.
Altum Credo, founded in 2017, has enabled tech-driven affordable home finance in the country. It focuses on the mostly untapped potential of unserved and underserved populations, particularly first-time homebuyers.
In 2018, the company raised $9.8 million in Series A fundraising, followed by $12 million in Series B equity funding in 2021.
Altum Credo had an AUM of INR 830 crore as of March 2024, with 93% of its subscribers falling into the economically disadvantaged or low-income segment. Its client base consists of salaried consumers from both official and informal segments, as well as self-employed small and medium-sized business owners, the majority of whom are low-income.
The average ticket size in its home loan portfolio is INR 8.5 lakh, with an average duration of 15 years. With a loan-to-value ratio of less than 50%, the average value of the properties funded by the company is between INR 15 and 25 lakh.
Vikrant Bhagwat, founder, MD, and CEO of Altum Credo, stated that at a time when the Indian economy is seeing unprecedented expansion, access to affordable home finance has enormous potential to contribute to this progress.
“This Series C fundraising is a significant milestone for the next phase of sustainable growth; it will improve our balance sheet, allowing for effective leverage and prudent asset and liability management (ALM). “The company will strengthen its distribution network and expand operations in central and northern India,” Bhagwat stated.
Altum Credo presently serves semi-urban and outskirts of urban areas in six states: Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, and Rajasthan.
We believe the company is at a tipping point where physical and digital infrastructures will combine to deliver industry-leading operational metrics,” said Rishi Maheshwari, managing partner at Z3Partners.
“This investment aligns with our basic philosophy of technology as a catalyst for financially empowering the underserved part of Bharat, while also establishing successful and scalable enterprises.”
