Gold loan platform Oro Money is all set to raise a new funding round from existing and new backers, according to two sources aware of the development. This will be the second funding round for the Chennai-based company since its inception.
“Oro is in mid-stage to pick up Rs 110-120 crore [$12-15 million] where majority of financing will be done by existing investors like Premji Invest and 021 Capital,” said one of the sources. The person did not want to be identified. “New investor may also participate in.”
In February last year, the company raised Rs 36 crore in a Series A round led by 021 Capital with the participation of Premji Invest and individuals including, Yash Amit Nanavati, Rathna Girish Mathrubootham, Prerna and Mridual Sahuwala. Entrackr had exclusively reported the development.
Oro Money provides gold loans at an annual interest rate of 9.48%. Currently, it’s operational in Chennai, Bengaluru, Hyderabad and Pune and plans to enter Coimbatore and Delhi. The company also offers locker facilities with a subscription price ranging from Rs 3,999 to Rs 9,999.
As per sources, the company is likely to cross the $100 million valuation mark post money. This will be a three fold increase in the valuation from $30 million during Series A round.
Reposnding to Entrackr’s queries, Oro’s co-founder Rakesh Mani said , “At Oro, right now the things we’re most excited about is that we’ve completed over 20,000 transactions, operationalised our 75th branch partnership with our banking partners and there’s some great expansion work happening.” He, however, did not comment in the upcoming fundraising. Queries sent to Premji Invest and 021 Capital did not elicit any response at the time the story was published.
Oro Money remained in pre revenue stage as of FY22. The Rakesh Mani-led company recorded Rs 70 lakh revenue from operations during FY22, while the figure was around Rs 88k in FY21. As per its consolidated financial statement with the RoC, the company’s losses jumped to Rs 6.46 crore in FY22 as compared to Rs 85 lakh in FY21.
The company competes with the likes of Indiagold, Ruptok and Rupeek. In November 2022, Indiagold raised $10 million in an extended Series A round while Rupeek raised its last round worth $34 million in January last year. Ruptok raised over $2 million in November 2021. It’s worth noting that Binny Bansal’s 021 Capital is already an investor in Rupeek.
