Altum Credo Nets INR 170 Cr To Expand Tech-Driven Housing Finance Solutions

Housing financier Altum Credo has secured INR 170 Cr ($19.4 Mn) in equity from its existing investor British International Investment (BII), the development finance arm of the UK government.

Altum Credo plans to utilise the freshly raised funds to scale up its operations across its current markets in India.

The company said that the proceeds will help expand credit access for low-income customers, primarily women, to support home construction and renovation.

“This investment further strengthens our balance sheet for a long-term sustainable impactful growth journey and our commitment to cater meaningfully to the large unmet demand for affordable housing finance in India,” said Vikrant Bhagwat, managing director and chief executive of Altum Credo.

Founded in 2017 by Bhagwat, Ganesh Rao and Ashish Tewari, Altum Credo provides technology-driven affordable housing finance solutions across India. It is primarily focused to cater to the overlooked potential of unserved and underserved segments and targets first-time homeowners.

The company last raised around $40 Mn in its Series C funding round in April to scale up its distribution network.

Excluding the new funding, Altum Credo has raised around $62 Mn since its inception from investors such as Z3Partners, Oikocredit, Aavishkaar Capital and Amicus Capital, among others.

The housing financier claims to have served more than 15,000 customers in six states, with assets under management (AUM) exceeding INR 1,000 Cr.

Investors’ Outlook On The Housing Finance Landscape

The development comes at a time when the housing finance market has been witnessing a growing interest among investors, as consumers prefer purchasing properties on an instalment basis.

For instance, Nivara Home Finance secured INR 245 Cr from True North and Baring Private Equity in March.

Prior to that, in October last year, Bengaluru-based NBFC Vridhi Home Finance bagged INR 310 Cr from Norwest Venture Partners and Elevation Capital.

India’s housing finance market, currently valued at INR 33,00,000 Cr ($379.7 Bn), is projected to grow at a 15-16% compound annual growth rate (CAGR) to reach INR 77,00,000-81,00,000 Cr ($886.1-932.3 Bn) by 2029-30, according to CareEdge Ratings.

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