Altum Credo Home Finance, a non-banking financial company in India, has secured 170 crore rupee (US$19.4 million) in equity funding from British International Investment, the UK’s development finance institution.

The company, registered with the Reserve Bank of India as an NBFC-HFC, focuses on providing housing loans to first-time, low-income homeowners in urban and semi-urban areas.

Altum Credo operates across six states in southern and western India, has more than 15,000 customers, and reported assets under management exceeding 1,000 crore rupee (US$114.4 million).

It plans to use the new funds to expand credit offerings, particularly for women borrowers, and to upgrade its technology and digital services.

The investment comes amid growing interest in India’s affordable housing finance sector, following recent fundraising by other players such as Weaver Services.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Housing finance sector attracts major capital as massive demand becomes clear

The surge in housing finance funding reflects the enormous scale of India’s housing shortage, with approximately 275 million people lacking access to adequate and affordable housing2.

Recent months have seen multiple large-scale investments: Altum Credo’s Rs 170 crore raise, Weaver Services’ $170 million funding, and the H-DREAM Fund targeting $1 billion in total commitments12.

The urban housing shortfall alone is estimated at 18 million units across Tier 1 and Tier 2 cities, creating a clear market opportunity that institutional investors are now targeting2.

This convergence of substantial funding rounds suggests that investors view India’s housing finance gap as both a significant business opportunity and a critical infrastructure need.

The IFC estimates a potential $1.4 trillion investment opportunity in India’s green buildings market by 2030, with nearly 90% expected from the residential sector2.

2️⃣ Development finance institutions prioritize financial inclusion through housing

Altum Credo’s focus on informal and semi-formal income segments, along with BII’s emphasis on women borrowers, reflects a strategic shift toward serving traditionally underbanked populations1.

The company has served over 15,000 customers across six states while maintaining assets under management exceeding Rs 1,000 crore, demonstrating that lending to low-income segments can achieve scale1.