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  • Digital-first Affordable Housing Financer, Altum Credo raises US$ 40 million in Series C Equity funding round

    Published on April 19, 2024

     Chennai : Altum Credo, a new age tech-led affordable housing finance company, has concluded its Series C equity round to the tune of US$ 40 million. The Company has raised US$ 27 million in equity and facilitated partial exit to Series A investors of US$ 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 Mr. PS Pai & family. Unitus Capital acted as the exclusive financial advisor for the transaction.

    Having obtained the housing finance license in June 2017, Altum Credo has pioneered tech-driven affordable-housing finance in the country. The Company is focused on the largely untapped potential of unserved and under-served segments, targeting first time homeowners. As of Mar 24, Altum Credo had an AUM of INR 830 cr (US$ 100 million) with 93% of their customers belonging to the economically weaker section (EWS) / low-income group (LIG) category. Altum Credo has a state-of-the-art technology infrastructure which is embedded in its entire loan-lifecycle, and since inception has insisted on 100% cashless transactions.

    Altum Credo raised its Series A equity funding of US$ 9.8 million in 2018, and Series B equity funding of US$ 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. This fund raise also enables the Company to remain well-capitalized in the near-term and support growth.

    Altum Credo’s customer base consists of a healthy mix of salaried customers (both formal and informal segments) and self-employed proprietors of small and medium enterprises who predominantly belong to low-income group. 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 (making EMI affordable) via technology assisted service delivery with unwavering service commitment of being Simple, Convenient and Relevant.

    The average ticket size of the home loan portfolio is at INR 8.5 lakhs with an average tenure of 15 years. With loan-to-value ratio below 50%, the average value of the properties funded is around INR 15-25 lakhs.

    Vikrant Bhagwat, (Founder) MD & CEO, Altum Credo said, “As India traverses towards being a USD 5trn 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. We are excited about the immense opportunities that lie ahead and the meaningful potential for financial inclusion. 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. We express sincere gratitude to all our stakeholders and partners for their continuous support and belief in our vision of impactful growth”.

    Rishi Maheshwari, Managing Partner, Z3Partners said, “We are delighted to partner with Altum Credo in this next phase of growth as they further expand their distribution network and empower millions of Indians by providing them access to long-term home finance. Vikrant, backed by a seasoned management team, have a stellar track record in financial services and have 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, at Oikocredit added, “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. We are confident that the company will continue to build a sustainable and impactful business under the able leadership of Vikrant and his team.”

    Altum Credo Home Finance:  Founded in 2017; headquartered in Pune, Altum Credo is a new age digital-first affordable housing finance company with laser sharp focus on providing long term retail home loans to low-income group customers who are first-time homeowners and have traditionally faced challenges in accessing long term credit from formal channels. As one of the fastest growing affordable housing finance companies, currently has well diversified operations in semi-urban and outskirt of urban areas in six states namely – Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Rajasthan. The company commenced business by harnessing technology across functions and built digital-led underwriting and service delivery process. The company closed March 24 with an AUM of INR 830 Crore (US$ 100 million), GNPA of 0.6% and a customer base of more than 11,000.

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