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 a 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 & family. Unitus Capital acted as the exclusive financial advisor for the transaction.
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. This fund raise also enables the company to remain well-capitalised in the near term and support growth.
As of March 24, Altum Credo had an AUM of Rs 830 crore ($100 million), with 93 percent of their customers belonging to the economically weaker section (EWS) or low-income group (LIG) category, according to a company statement. Altum Credo raised Series A equity funding of US$ 9.8 million in 2018 and Series B equity funding of US$ 12 million in 2021.
Vikrant Bhagwat, (Founder) MD & CEO, Altum Credo, said, “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.”
Harsh Shah, Principal at 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 adapt to rapid climate change.”
As per a company statement, Altum Credo is focused on the largely untapped potential of unserved and underserved segments, targeting first-time homeowners. The average ticket size of the home loan portfolio is Rs 8.5 lakhs, with an average tenure of 15 years. With a loan-to-value ratio below 50 per cent, the average value of the properties funded is around Rs 15–25 lakhs.
