On-line gold mortgage platform Rupeek on Tuesday stated that it has raised an extra $30 million in fairness funding. Earlier in August, the startup had introduced elevating one other $30 million, taking the full fundraise to $60 million over two rounds.
Silicon Valley-based international enterprise capital agency, GGV Capital, Bertelsmann India Investments, Binny Bansal, KB Investments Co (KBIC), Tanglin Enterprise Companions, Sequoia India, and Accel Companions participated in these rounds.
Based on the startup, it is going to make investments the recent funds into its know-how platform, use it for buyer acquisition, and bettering buyer entry to credit score within the nation.
Talking on the funding, Sumit Maniyar, Chief Govt Officer, Rupeek Fintech stated,
“We have now seen a large transformation within the fintech sector and potential alternatives to associate with banks. We plan to scale present and newer channels for gold monetisation. We are going to use the recent funds to put money into know-how, buyer acquisition, and work in the direction of bettering the accessibility of credit score within the nation”.
Began in 2015 as an asset-backed lending market, Rupeek leverages know-how to function with a branchless mannequin and passes the advantage of decrease operational prices to the top buyer.
It gives ‘doorstep gold loans’ utilizing know-how, and is presently disbursing gold loans at an annual run price of greater than $200 million.
Hans Tung, Managing Associate at GGV Capital can be becoming a member of Rupeek as a board of director. Commenting on GGV’s funding, Hans added,
“For India’s middle-class households, gold has lengthy been a favorite technique to save and make investments. Moderately than letting it sit idle, Rupeek has turned a household’s dormant asset into a simple technique to get a mortgage at inexpensive charges to develop their small enterprise or pay for emergency wants. We’re impressed by the deep partnerships that Sumit and the group cast with banks in India, and hope that these partnerships might be leveraged to launch extra modern and localised monetary merchandise for the middle-class of India.
With a market of brokers, Rupeek permits huge, Indian banks to supply aggressive gold mortgage merchandise on the privateness of buyer’s houses by sending brokers to individuals’s houses and depositing the gold on the nearest department of the associate financial institution that provided the mortgage.
Commenting on the funding, Binny Bansal, Co-Founder, Flipkart stated,
“I’m actually enthusiastic about how Rupeek is opening up entry to formal credit score for a big base of customers. Its sturdy buyer proposition and method of partnering with banks is actually a game-changer for the unorganised gold loans house in India.”
At current, Rupeek has 1,300 workers, and is current in ten cities together with Bengaluru, Mumbai, New Delhi, Jaipur, Chennai, Ahmedabad, Surat, Mumbai, Coimbatore, and Pune.
“Rupeek has recognized a key downside of availability and accessibility to credit score to the self-employed sector in a market like India. Rupeek has managed to bridge this hole within the lending market at a decrease price with its tech capabilities. The quantity of stationary gold in India opens up the chance for monetisation and distribution. We’re very excited to proceed partnering with them,” Anand Daniel, Associate, Accel Companions added.
Whereas, GV Ravishankar, Managing Director, Sequoia Capital India LLP, stated,
“Since its early days, we have now seen Rupeek evolve right into a strongly differentiated fintech firm, partnering with banks to deliver superior options for its debtors. It has demonstrated how younger firms can efficiently leverage the capital benefit of banks to open up market alternatives which might be presently underserved – making a profitable proposition for its banking companions to achieve share within the gold mortgage market.”
Based on Rupeek, it plans to extend its buyer base from one lakh to 1 million, and supply accessibility of credit score to a billion Indians by 2022 throughout 100 cities via its asset-based choices.
(Edited by Suman Singh)