Altum Credo raises USD 40 million from Z3Partners, others

Mumbai: Affordable housing financier Altum Credo on Thursday announced a USD 40 million (around Rs 332 crore) fundraise in a round led by Z3Partners and impact investor Oikocredit.

The 2017-founded company said the Series C round includes a USD 27 million fundraise in fresh equity and USD 13 million in partial exit to Series A investors, a statement said.

The Pune-headquartered company plans to deploy the new capital for growing its assets under management, which stood at Rs 830 crore as of March 2024, it said.

Apart from the lead investors, the UK's British International Investment and existing investors Aavishkaar Capital, Amicus Capital and PS Pai and family also participated in the new round, it said.

It had raised a Series A equity funding of USD 9.8 million in 2018 and USD 12 million in Series B round in 2021.

The company focuses on unserved and under-served segments using digital tools, targeting first time homeowners, and 93 per cent of the customers are from the economically weaker section (EWS) / low-income group (LIG) category.

It had 11,000 customers in March 2024 and the gross non performing assets stood at 0.6 per cent.

The average ticket size of its home loans is Rs 8.5 lakh with an average tenure of 15 years. With loan-to-value ratio below 50 per cent, the average value of the properties funded is around Rs 15-25 lakh.

"We believe the company is at an inflection point where physical and digital infrastructure come together to provide industry-leading operational metrics," Z3Partners' managing partner Rishi Maheshwari said.

The funding will be used for enhancing its distribution network and expanding operational footprint, said the company, which has a presence in Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Rajasthan.

Altum Credo's managing director and chief executive Vikrant Bhagwat termed the latest funding round a critical milestone for the next phase of sustainable growth.

This will strengthen the balance sheet, enabling effective leverage and sound asset liability management.