Construction Industry News
Altum Credo, a technology-driven housing finance company, has successfully closed its Series C capital round, raising $40 million. The financing includes $27 million of capital raised by the company and a partial exit to Series A investors for a total value of $13 million. The round is led by Z3Partners and Oikocredit, and is joined by British International Investment, a UK development finance institution and impact investor, as well as existing investors Aavishkaar Capital, Amicus Capital and PS Pai & Family. Unitus Capital acted as the exclusive financial advisor for the deal.
After obtaining a housing finance license in June 2017, Altum Credo has become a pioneer in technology-based affordable housing finance in the country. The company focuses on the largely untapped potential of underserved and disadvantaged segments, targeting first-time homeowners. As of March 24, Altum Credo had assets under management worth Rs 830 crore ($100 million) and 93% of its clients belonged to the Economic Weaker Section (EWS)/Low Income Group (LIG) category. Altum Credo has a modern, integrated technology infrastructure throughout its loan lifecycle and has insisted on 100% cashless transactions since its inception.
Altum Credo has raised Series A equity financing of $9.8. million in 2018 and a Series B equity financing of $12 million in 2021.
The company plans to use proceeds from the current fundraising to further grow AUM. fingerprint. This fundraising also allows the company to remain well capitalized in the near term and support growth.
Altum Credo's client base consists of a healthy mix of salaried clients (formal and informal sectors) and freelancers. Salaried SME owners who mostly belong to the low-income group. These clients aspire to become homeowners, but most have little access to long-term credit, so they remain underserved by large financial institutions. Altum Credo aims to bridge this gap by providing long-term financing (making EMIs affordable) by offering technology-enabled services with an unwavering service commitment to be simple, convenient and relevant.
Average portfolio size Home Loan is INR 8.5 lakh with an average tenure of 15 years. With a loan-to-value ratio of less than 50%, the average value of financed properties is around INR 15 to 25 lakh.
Vikrant Bhagwat, (Founder) MD & CEO, Altum Credo said: India towards a $5 trillion economy, access to affordable housing finance has huge potential to contribute to this growth This Series C fundraising is a critical milestone for the next phase of sustainable growth and will strengthen our balance sheet enabling effective leverage and strong asset management. The company will strengthen its distribution network and expand its operations in Central and North India. We are excited about the tremendous opportunities ahead and the great potential for financial inclusion. With each financing round, we achieve our goal of deepening our resolve to provide affordable and long-term housing financing solutions to those who continue to struggle. From lack of services or lack of services We extend our sincere gratitude to all our stakeholders and partners for their continued support and confidence in our vision of impactful growth.”
Rishi Maheshwari, Managing Partner, Z3Partners said: “We are delighted to partner with Altum Credo at this stage. Next of growth as they expand their distribution network and empower millions of Indians by providing them with access to long term mortgage financing. Backed by an experienced management team, Vikrant has a proven track record in the financial services industry and has created 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 our core thesis that technology is a catalyst for financially empowering the underserved sector of Bharat, while also building businesses in a profitable and scalable manner.”
Harsh Shah, principal, 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.”
