[Funding alert] Housing finance company Altum Credo raises Rs 88 Cr led by Amicus Capital, Aavishkaar Capital, others
The company plans to use the proceeds from the current fundraising round to strengthen its technology platform and scale the business.
Housing finance companyhas received a fresh equity investment of Rs 50 crore ($6.7 million) from Amicus Capital, a growth fund. Existing investors, Aavishkaar Capital and PS Pai and family, also participated with an investment of Rs 19 crore each ($2.5 million), taking the round size to Rs 88 crore ($12 million).
Altum was founded in 2014 by Vikrant Bhagwat along with Ganesh Rao and Ashish Tewari. It has a network of 30 branches spread across the states of Maharashtra, Telangana, Tamil Nadu, Karnataka, Rajasthan, and Andhra Pradesh. Being an affordable housing finance company, it focuses on the economically weaker and low-income group categories which have traditionally faced challenges in accessing credit from formal channels.
Vikrant Bhagwat, MD and CEO, Altum Credo said,
“This funding round gives us a clear visibility to expand our operations in the six states where we are currently present and enhance our technology platforms to provide home loans to the low-income population segment aspiring to be first-time home buyers. This also allows us to enhance and diversify our borrowing mix, build leverage which will facilitate our next phase of growth.”
The company plans to use the proceeds from the current fundraising round to strengthen its technology platform and scale the business. It aims to enhance usage of technology across various aspects of operations including origination, assessment and monitoring as it evolves into a digitally-powered housing finance company. Moreover, the fundraise shall enable the company to achieve its growth targets and remain well-capitalised in the near term.
“Altum has all the right building blocks in place — strong systems, well-entrenched processes, and a management team that has extensive experience in scaling financial services businesses. The company is well-positioned to capitalise on the secular decadal growth opportunity in the Indian housing finance market by using technology to reduce friction and allow them to grow into a segment leader,” added Mahesh Parasuraman, Co-founder and Partner, Amicus Capital.
Sushma Kaushik, Partner, Aavishkaar Capital stated, “The Altum team has been able to demonstrate resilience despite difficult market conditions. They have best in class portfolio quality and are well poised for growth stemming from the demand for first homes in the affordable segment.”
Edited by Kanishk Singh