Altum Credo, a tech-led affordable housing finance company, has raised $40 million in its Series C funding round led by Z3Partners and Oikocredit, per an announcement on Thursday.
The financing also saw 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, the startup said in a statement.
The company plans to use the proceeds from the current fundraise to achieve AUM growth by further enhancing its distribution network and expanding its operational footprint, it said in a statement.
“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 fundraise 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,” said Vikrant Bhagwat, (Founder) MD & CEO, Altum Credo.
Having obtained the housing finance licence in June 2017, Altum Credo is focused on the largely untapped potential of unserved and under-served segments, targeting first-time homeowners. Its 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 low-income groups.
As of Mar 24, the company had an AUM of Rs 830 crore with 93% of its customers belonging to the economically weaker section/low-income group category. The average ticket size of the home loan portfolio is Rs 8.5 lakh with an average tenure of 15 years.
Altum Credo raised its Series A equity funding of $9.8 million in 2018 and Series B equity funding of $12 million in 2021.
Unitus Capital acted as the exclusive financial advisor for the latest transaction.
