Altum Credo Home Finance Pvt. Ltd, on Tuesday, said it has raised fresh equity investment of $6.7 (Rs 50 crore) from Amicus Capital. Existing investors Aavishkaar Capital and PS Pai and family also participated, with an investment of Rs 19 crore each ($ 2.5 million), taking the round’s size to Rs 88 crore ($ 12 million), the company said in a statement.
The Pune-based housing finance company will use the funds to strengthen its technology platform and scale up the business. It aims to enhance the usage of technology across its operations including origination, assessment and monitoring.
“This funding round gives us 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 segment aspiring to be first-time home buyers," said Vikrant Bhagwat, MD and CEO, Altum Credo in the statement.
“This also allows us to enhance and diversify our borrowing mix, and build leverage which will facilitate our next phase of growth,” he added.
Altum Credo was founded in 2016 by Vikrant Bhagwat, Ganesh Rao and Ashish Tewari. The company received a housing finance licence from industry regulator National Housing Bank in 2017.
Seven-year-old Altum Credo provides housing finance to persons in the economically weaker and low-income group that face challenges in accessing credit from formal channels.
As of now, Altum has a network of 30 branches spread across Maharashtra, Telangana, Tamil Nadu, Karnataka, Rajasthan, and Andhra Pradesh.
Amicus Capital is an early-growth fund set up by private equity (PE) professionals, Sunil Theckath Vasudevan and Mahesh Parasuraman. The fund is currently investing from its first fund of $ 88 mn (Rs 625 crore).
It focuses on investing in four sectors - financial services, consumer, healthcare and technology. Altum is Amicus Capital’s eighth investment from its maiden fund.
This week, BASIC Home Loan raised $3.5 million in Series A funding led by Venture Catalysts (VCats) and Gruhas Proptech.
Earlier this month, Aviom India Housing Finance, which focuses on secured home loans and loans against property in Tier-II and Tier-III towns, raised $8 million (around Rs 59 crore) in Series C funding from Sabre Partners.
In September this year, Gurugram-based Ummeed Housing Finance raised Rs 270 crore ($37 million) in its Series E funding round, led by Norwest Venture Partners. Existing investor Morgan Stanley Private Equity Asia also participated in the funding round.
In the same month, Homeville Consulting Pvt Ltd, a housing credit enablement network raised $7 million (around Rs 52 crore) from 9Unicorns, Varanium NexGen Fund, and others.