Source: Entrackr
British International Investment (BII) plans to make an additional investment of ₹70 crores (approximately $8.2 million) in Pune-based housing finance company, Altum Credo. This comes in the wake of BII investing ₹100 crores in Altum Credo just a month ago, signalling a solid belief in the company’s future growth.
Disclosure of the investment was made in the filings with the Registrar of Companies (RoC). In the filing, it was stated that Altum Credo’s board of directors has approved the issue of 40,46,243 Series C1 Compulsorily Convertible Preference Shares (CCPS) at a price of ₹173/share to BII to realize the total of ₹70 crore.
Stake Growth
Before this capital injection, BII held 9.04% of Altum Credo, and after new shares were issued, it shall have 12.55%. However, Aavishkaar Capital will still maintain a superior shareholding of 14.27%.
How the Funds Will Be Utilized
The company indicated that the new capital would allow them to expand their lending and to add locations, especially focusing their efforts in semi-urban and rural areas. This will further their vision for Altum Credo, providing home loans for lower-income groups that have always struggled to provide traditional banks with adequate underpinnings to access funding.
Funding History and Valuation
In April 2024, Altum Credo closed $40 million (approximately ₹330 crore) from a primary & secondary round of share sales. This was led by Z3Partners and Oikocredit. According to the startup data platform, TheKredible, the company has so far raised $80 million.
Estimates by Entrackr suggest that the valuation of the company could be ₹1,777.5 crore (approximately $209 million) after the recent capital raised from BII.
About Altum Credo
Formed in 2016, Altum Credo provides housing finance solutions to economically weaker sections and low-income groups. The company offers home loans starting from ₹4 lakh to a maximum of ₹40 lakh and for a repayment period between 5 and 20 years. The majority of Altum Credo’s customers are first-time homebuyers in semi-urban and rural areas of India.
Altum Credo’s business model is premised on addressing the gap in funding that traditional lenders do not serve, thereby enabling more families to become homeowners and uplift their living conditions.
Financial Performance
Total operating revenue for the financial year ending March 2024 increased by 67% to ₹112.87 crore, while net profit grew more than two-fold to ₹20 crore. This was due to higher loan disbursements and more efficient cost management.
