Gold loan startup Yellow Metal on Wednesday announced raising $3 million (Rs 24.8 crore approximately) in a seed round led by MSA Novo, a global venture capital firm. Existing investors WaterBridge Ventures and Java Capital also joined the round.
Entrackr exclusively reported the development in December last year.
The startup said it will use the capital to expand its technology team operations, and ramp up proprietary loan management system.
Founded in 2020 by Rahul and Nikhil Boggaram, Yellow Metal aims to make it easier for people in rural India to access gold loans. The company says it provides loans with zero processing fees and interest rates, ranging from 0.79% to 1.75% per month.
Yellow Metal remained a pre-revenue stage company till FY21 but posted a total income of Rs 6.34 lakh, including Rs 1.6 lakh in operating revenue, in FY22. As per annual financial statements with the RoC, the startup recorded a loss of Rs 62.8 lakh during FY22.
The two-year-old platform competes with the likes of Indiagold, Rupeek, and Ruptok.