In its Series C funding round, which was spearheaded by Z3Partners and Oikocredit, housing finance startup Altum Credo raised $40 million. British International Investment, as well as current investors Aavishkaar Capital, Amicus Capital, and PS Pai and family, participated in the funding round as well.
According to a press release from the company, Altum Credo has raised $27 million in equity and enabled a partial exit to Series A investors for $13 million. Prior to 2021, the Pune-based business had raised $9.8 million in Series A funding and $12 million in Series B funding.
With the additional funds, the company intends to grow its AUM by fortifying its distribution network and extending its reach into additional cities.
In India’s semi-urban and rural areas, Altum Credo makes money accessible to first-time homebuyers. For a period of five to twenty years, it offers home loans with amounts ranging from Rs 4 lakh to Rs 40 lakh.
The company also stated that the home loan portfolio’s average ticket size, with a 15-year duration, is Rs 8.5 lakhs. The average value of the properties funded is approximately Rs 15-25 lakhs, with a loan-to-value ratio less than 50%.
Targeting first-time homeowners, Altum Credo primarily concentrates on underserved and unserved populations. 93% of Altum Credo’s clients fall into the economically weaker section (EWS) or low-income group (LIG) category, and the company had an AUM of Rs 830 crore ($100 million) as of March 2024.
Altum Credo’s operating revenue increased by 102.4 percent to Rs 67.2 crore in FY23, according to startup data intelligence platform TheKredible. Its profit increased significantly in FY23, rising by 99% to Rs 8.95 crore. FY24 financials have not yet been filed.
In addition, Andromeda, Easy Home Finance, Aviom, Altum Credo, and Basic Home Loan all function in a comparable market.
In January of last year, venture capital firm Z3 Partners announced the Fund’s final close at Rs 550 crore. It made a $9 million investment in a fast-food chain earlier this week.
