Altum Credo Home Finance Pvt Ltd, which is a non-banking financing firm based on housing finance, has received ₹170 crores as equity fund investment by British International Investment (BII), the UK development finance institution and impact investor. The new capital injection is a momentous milestone in fulfilling the vision of Altum Credo to increase housing finance access among the underprivileged and lower-income Indian population. The investment will be focused on expanding the company in the current geographies, making improvements to its digital infrastructure, and increasing its footprint by reaching more first-time homeowners. 

Altum Credo focuses on first-time homeowners

Altum Credo has also carved out an identity in the housing finance market by targeting first-time homebuyers in the lower end of the income strata, which is informal and semi-formal. Altum Credo is a non-deposit-taking housing finance Company with a license to operate in India, registered with the Reserve Bank of India, and it has served more than 15,000 customers across six states in southern and western India. It employs an approach tailored to the individual needs of borrowers who require homes and lack formal credit histories, yet possess the potential and desire to purchase homes.

This focus on urban and semi-urban regions gives the company an opportunity to lend to a segment that is often ignored by mainstream lenders. Altum Credo helps bridge the gap between what a person wants and what they can access by coming up with customized financial products and flexible underwriting models. Its assets under management have already surpassed the ₹1000 crores mark, which is a pointer to both operational maturity and relevance.

British International Investment’s decision to reinvest in Altum Credo

The move by British International Investment to reinvest in Altum Credo is informed by its wider investment strategy of facilitating inclusive growth and climate resilience. Housing is a key pillar of development, said Shilpa Kumar, Managing Director and Head of India at BII, and it serves not only as shelter but also as a point of access to basic services and a greater quality of life. By forming a partnership with Altum Credo, BII hopes to give low-income households, especially women, a safer and more secure home.

BII undertakes investments in various businesses, numbering more than 1,600 businesses in over 70 countries, but with significant investment in climate finance. It is allocated at least 30 percent of its holdings in the 2022 2026 period on climate-related investments. In this regard, housing finance has been considered as a social necessity as well as a strategic tool towards the creation of climate-resilient societies. The major in investment Altum Credo is aligned with the dual mandate of BII, which is financial sustainability and developmental impact.

Sector growth 

Digital efforts exist to ensure more transparency in the company; these actions weaken the loan application and approval process. Altum Credo will achieve this by using mobile platforms, data analytics, and automated underwriting to reduce the turnaround times and enhance service delivery. Such innovations are highly useful in semi-urban regions where there may be low physical infrastructure, but people have high mobile penetration.

The funding announcement made by Altum Credo is occurring when the housing finance industry in India can attract investor focus once again. Only a week ago, Weaver Services, a tech-enabled housing finance platform, had raised a $170 million round led by Lightspeed and Premji Invest, with Gaja Capital also participating. The money will be utilized in acquiring assets, technology upgrades, and acquisitions in Tier II and III cities. This is a continuation of an emerging appreciation of housing finance as an area of opportunity with high impact.

These are the key aspects leading to the development of the sector, and include the growing urbanization of the population, favorable government policies, and the growing demand for affordable housing. Housing development schemes like Pradhan Mantri Awas Yojana (PMAY) have provided a favourable situation in which the private sector is allowed to contribute to the field. Simultaneously, regulatory changes and digital innovations are lowering the costs of accessing underserved markets by NBFCs.

Conclusion

The ₹170 crore investment by British International Investment opens a new chapter of inclusive housing finance in the journey of Altum Credo. By paying close attention to underserved communities, promoting gender inclusion, and leveraging technology-driven growth, the company is well-positioned to expand its operations and contribute to the Indian housing revolution. The collaboration with BII is a perfect picture of how the strategic capital can be leveraged at the intersection of strategy with purpose.