Bengaluru-based digital lending firm Rupeek, which offers gold loans, is planning to raise around $12 million in an early stage funding led by Accel India and financial inclusion focused investment firm Lok Capital.
After the funding, the firm is expected to be worth $40-45 million, according to the company. Existing investor Sequoia Capital India will also participate in the round.
“Company is adding Rs 2 crore in its loan portfolio every single month and its revenue of $1 million is going on”, ET report quoted a person familiar with the development.
The start-up offers valuable lending solutions at most affordable interest rates in the market. It aims at delightful customer experience for the borrowers.
It has raised angel funds from Facebook executive and former Snapchat chief product officer Anand Chandrasekaran. The firm has partnered with NBCF’s to give loans.
At present, the gold-loan space is dominated by older NBFCs such as Muthoot Finance and Manappuram Finance, which have been backed by marquee investors WestBridge Capital Partners, India Equity Partners, Baring Private Equity Asia, GIC and several others, according to data from startup researcher Tracxn. Sequoia Capital was an investor in Manappuram Finance.
In this segment, the companies that offer gold loans include Gold Uno, an online platform for gold loans founded in 2015 and Achievers Quick Gold Loan, which was founded in 2013 in Kolkata.
Rupeek also offers customer-facing mobile application. It gives personalised support, on-demand pickup and return of the valuables on gold products. The startup has their own centers from where the customer can pledge gold. It allows ownership of one year on gold loans. The loan can be used for
The startup has its own centers from where the customer can pledge gold. It allows ownership of one year on gold loans. The loan can be used for general purposes as well as for medical and other purposes.