Altum Credo, a Pune-based housing finance company, has successfully raised $40 million in its Series C funding round. This latest financing was led by Z3Partners and Oikocredit, with participation from British International Investment and existing investors Aavishkaar Capital, Amicus Capital, and PS Pai and family.
Of the total amount raised, $27 million came in the form of equity, while the remaining $13 million facilitated a partial exit for Series A investors. Altum Credo had previously raised $9.8 million in Series A funding and $12 million in Series B funding in 2021.
The company has outlined plans to utilize the newly acquired capital to drive the growth of its Assets Under Management (AUM) by bolstering its distribution network and expanding its operations into more cities.
Altum Credo specializes in providing financial accessibility to first-time homebuyers in semi-urban and rural areas of India. It offers home loans ranging from Rs 4 lakh to Rs 40 lakh, with 5 to 20 years of repayment.
Highlighting the company’s lending portfolio, Altum Credo revealed that the average ticket size of its home loans is Rs 8.5 lakhs, with a tenure of 15 years. Moreover, boasting a loan-to-value ratio below 50%, the properties funded typically range from Rs 15 lakhs to Rs 25 lakhs.
With a strategic focus on underserved segments, particularly first-time homeowners, Altum Credo has amassed an impressive AUM of Rs 830 crore ($100 million) as of March 2024. Notably, 93% of its customer base belongs to the economically weaker section (EWS) or low-income group (LIG) category.
In addition to Altum Credo, other players such as Aviom, Easy Home Finance, Basic Home Loan, and Andromeda operate within a similar space, catering to the growing demand for accessible housing finance solutions.
It’s worth mentioning that Z3 Partners, the lead investor in this funding round, recently announced the final close of its Fund at Rs 550 crore in January of the previous year. Just this week, the firm made a $9 million investment in the quick-service restaurant chain Wow! Momo showcases its diverse investment portfolio across sectors.
