Indian Mortgage Fintech Firm Raises $40M to Facilitate Homeownership for Low-Income Groups

India’s housing loan market faced challenges amid the Covid-19 pandemic but is now showing signs of recovery. With a valuation of US$300 billion, the sector is projected to grow at a compound annual growth rate of 22.5% over the next five years.

However, lower-income groups continue to be underserved, lacking access to long-term credit, including housing mortgages, from established financial institutions.

Addressing this gap is Altum Credo, a housing finance firm based in India. The company recently secured US$40 million in a Series C equity round led by Z3Partners and Oikocredit, with participation from British International Investment, Aavishkaar Capital, and Amicus Capital. Of this amount, US$27 million was raised through equity funding, while the remaining US$13 million facilitated a partial exit for its Series A investors.

Founded in June 2017, Altum Credo leverages technology across its entire loan lifecycle, allowing applicants to apply for loans online. The majority of Altum Credo’s customers, comprising 93%, are first-time homeowners from economically weaker sections and low-income groups.

The fresh funds will enable Altum Credo to boost its assets, currently worth US$100 million, enhance distribution channels, and expand operations. The company aims to extend its footprint into central and northern India in the future.

Beyond India, where the housing loan market is fragmented, startups in Indonesia are also venturing into the mortgage fintech space. Additionally, Singapore-based LXA, focusing on streamlining the mortgage lifecycle, recently raised a US$10 million seed round in late 2023.

Source: techinasia.com