Source: Entrackr
Pune, July 18 – Affordable housing finance company Altum Credo is raising ₹100 crores (approximately $11.8 million) in its Series C funding. The new money is being invested by British International Investment (BII), a previous investor in the company.
This investment comes after Altum Credo’s Series C prior $40 million fundraise in April 2024, which included $27 million in primary capital and $13 million in cash against the secondary sales of shares, entailing partial exits for some original investors.
The board of directors at Altum Credo has approved the issuance of 57.8 lakh Series C1 compulsorily convertible preference shares (CCPS) at a price of ₹173 per share, totaling ₹100 crore. The filings indicating this move were made available via the Registrar of Companies (RoC).
The additional funding will allow Altum Credo to develop its lending platform and improve its geographical reach in the semi-urban and rural areas of the market across India. The funding will also be used to bolster digital infrastructure, and help with long-term growth.
This funding raised Altum Credo’s post-money valuation to an estimated ₹1,694 crore (about $200 million). This is a 60% increase from the valuation of the previous for the company, when it raised funds at a valuation of $124 million according to entrackr.
Emphasized Affordable Housing
Altum Credo was established in 2016. Home loans to low-income individuals and economically weaker sections (EWS). Primarily targeted towards first time homebuyers and growing markets in semi urban and rural. Loans range from ₹4 lakh to ₹40 lakh, with repayment over 5 to 20 years.
Altum Credo has raised about $70 million since inception. Following the latest allotment, BII’s stake in the company will be 9.04% while Altum’s co-founders – Ganesh Rao, Ashish Tiwari and Vikrant Bhagwat will collectively own about 18.26%. as per startup data intelligence platform TheKredible,
Impressive Financial Growth
For the financial year ending March 2024, Altum Credo’s operational revenue increased by 67% to ₹112.87 crore and its net profits more than doubled to ₹20 crore. These are great results for Altum Credo and support its strong business model and growing customer base.
Altum Credo, Aviom, Easy Home Finance, Basic Home Loan, and Andromeda are all competing in the affordable housing space.
The fresh capital will allow Altum Credo to serve more customers and continue to make home ownership possible for underserved families across India.
