Indian mortgage fintech firm secures $40m to help low-income groups own homes

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India’s housing loan market was troubled during the Covid-19 pandemic but appears to be recovering. Valued at US$300 billion, the space is expected to have a compound annual growth rate of 22.5% over the next five years.

At the same time, lower-income groups remain underserved, lacking access to long-term credit – including housing mortgages – from established financial institutions.

That’s the need that India-based Altum Credo aims to fulfill. The housing finance firm recently secured US$40 million in a series C equity round.

Z3Partners and Oikocredit led the round, with British International Investment, Aavishkaar Capital, and Amicus Capital participating. While US$27 million of the amount was an equity fundraise, the remaining US$13 million facilitated a partial exit to its series A investors.

Launched in June 2017, Altum Credo uses tech across its entire loan lifecycle, and applicants can apply for the loans online. First-time homeowners from the weaker economic section and the low-income group represent 93% of Altum Credo’s customers.

The fresh funds will help Altum Credo boost its assets (currently worth US$100 million), enhance distribution, and expand operations. Moving forward, the company plans to expand into central and northern India.

Aside from India and its fragmented housing loan space, Indonesia has also seen startups tackling the mortgage fintech space. More recently, Singapore-based LXA – which aims to streamline the mortgage lifecycle – raised a US$10 million seed round in late 2023.

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