Affordable housing lender Altum Credo has secured $40 million in a Series C round, led by new investors Z3 Partners, Oikocredit as well as UK’s DFI British International Investment. Existing backers also participated in the round.
The transaction was a mix of primary ($27 million) and secondary where some existing backers took an exit. Altum Credo’s existing backers include Aavishkar Capital, Amicus Capital and PS Pai & Family.
Altum Credo, which obtained its housing finance licence in June 2017, offers affordable housing finance to the largely untapped potential of unserved and under-served segments, targetting first-time homeowners.
As of March, Altum Credo had an AUM (asset under management) of Rs 830 crore (around $ 100 million) with 93% of customers belonging to the economically weaker section (EWS)/low-income group (LIG) categories. Its clientele consists of salaried customers and self-employed proprietors of small and medium enterprises.
“This Series C fundraise is a milestone for the next phase of growth and will strengthen our balance sheet. The company will enhance its distribution network and expand operations in Central and Northern India,” said Vikrant Bhagwat, managing director and chief executive officer, of Altum Credo.
Prior to this fundraise, Altum Credo raised $ 9.8 million in its Series A funding round in 2018, and $12 million in Series B equity funding in 2021.
The average ticket size of the home loan portfolio is Rs 8.5 lakh with an average tenure of 15 years. With a loan-to-value ratio below 50%, the average value of the properties funded is around Rs 15-25 lakh, the company said.
“This investment fits into our core thesis of technology being a catalyst to financially empower the underserved segment, while also building businesses in a profitable and scalable manner,” said Rishi Maheshwari, managing partner, Z3Partners.
Unitus Capital acted as the exclusive financial adviser for the transaction.
“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 business under the leadership of Vikrant and his team,” said Harsh Shah, principal, at Oikocredit.
