Existing investors Aavishkaar Capital and PS Pai & family, also participated in the investment round.
According to the company it will use the proceeds from the current fund raise to strengthen its technology platform and scale the business. The company aims to enhance usage of technology across various aspects of operations including origination, assessment and monitoring of loans as it shifts towards further digitising processes.
Seven-year-old Altum Credo provides housing finance to economically weaker and low-income group categories which have traditionally faced challenges in accessing credit from formal channels.
“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,” said Vikrant Bhagwat, managing director & chief operating officer, Altum Credo.
As of now, Altum has a network of 30 branches spread across Maharashtra, Telangana, Tamil Nadu, Karnataka, Rajasthan, and Andhra Pradesh.
“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. We are excited to partner with Altum and are committed to supporting the Company in this phase of hyper growth,” said Mahesh Parasuraman, co-founder and partner, Amicus Capital.
Amicus Capital is currently investing out of its first fund worth ₹625 crore (around $88 million) and is focused on investment opportunities across financial services, consumer, healthcare and technology.
“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. We at Aavishkaar are excited to back the Altum team in this journey,” said Sushma Kaushik, partner, Aavishkaar Capital.
This article was first published on livemint.com