Exclusive: Gold loan startup Oro Money raises $12.5 Mn in new round

Gold loan platform Oro Money has secured Rs 105 crore or $12.5 million approximately from new and existing investors. This is the first round of financing for the Chennai-based startup this year.

The board at Oro Money has passed a special resolution to issue 7,916 preference shares at an issue price of Rs 1,32,633 each to raise Rs 105 crore or $12.5 million approximately, regularity filing with RoC shows.

In June, Entrackr exclusively reported about this financing round.

New investors, Singularity Ventures and Three State Capital invested Rs 28 crore and 16 crore in the round while existing investors PI Opportunities Fund and 021 Capital poured in Rs 24 crore and Rs 12 crore respectively. PI Opportunities Fund is an affiliate of Premji Invest while Three State Capital is the venture capital fund of Flipkart co-founder Binny Bansal.

Two existing individual investors including Caratlane’s co-founder and ex-CEO Mithun Sacheti and Siddhartha Sacheti (creative director and CEO of Jaipur Gems) participated in the funding round with Rs 12.5 crore each. 

See the full round breakup:

Following the fresh proceeds, O21 Capital holds 11% whereas Premji Invest, Singularity Growth, and Three State Capital own 10.5%, 7.3%, and 4.2% stake in the Chennai-based firm. Mithun and Siddhartha Sacheti's holdings are equivalent to the founders after the allotment of this round. Check TheKredible to see the detailed captable.

The company has raised $17 million to date and has been valued at around $47 million post allotment of the new round, as per TheKredible estimates.

Oro Money provides gold loans at an interest rate of 9.48%. Currently, it’s operational in Chennai, Bengaluru, Hyderabad, Pune, and Vijayawada and plans to enter Coimbatore and Delhi soon. The firm also offers locker facilities with a subscription price ranging from Rs 3,999 to Rs 9,999.

Oro Money is yet to file its financial statements for FY23 but it remained in the pre-revenue stage during FY22 with a loss of Rs 6.46 crore. The company competes with the likes of Indiagold, Ruptok and Rupeek.