New Delhi, Fintech startup Rupeek on Monday announced a $30 Mn funding led by Bertelsmann India Investments with participation from existing investors Accel and Sequoia India. This funding, which will be completed in two tranches, will be used towards product development and market expansion.
“Rupeek is currently disbursing gold loans at an annual run rate of more than $150 Mn and is growing 20 per cent month on month,” a statement here said. The organised gold loan disbursal in India was estimated at $90 Billion per annum.
India currently holds 27000 tonnes of gold worth more than $1 Trillion, out of which only 6-7per cent is monetized through the organized market. The unorganised market is estimated to be three times the size of the organised gold loan market.
Currently, India imports 750 tonnes of gold annually without contributing to the GDP multiplier as most of the imported gold sits idle in the form of jewelry. Rupeek believes that gold loans can be an effective gold monetisation mechanism.
Rupeek founder and CEO Sumit Maniyar said, ‘As a brand, we would like to bring transparency in the lending space and protect retail investor interest at all costs. We will be using our proprietary tech hardware to ensure standardization, fairness, and scalability in gold purity assessment. The investment will also help us rapidly scale across new markets.’
Pankaj Makkar, Managing Director at Bertelsmann India Investments said, ‘Powered by state-of-the-art technology and an automated asset-light supply chain, Rupeek is transforming the way gold loans are disbursed in India. We are confident about Sumit and the team’s vision to establish Rupeek as the most trusted gold-loan brand in the country’.
Anand Daniel, Partner at Accel said, ‘Gold is integral to the Indian way of life and monetization of gold assets in the country represents a massive opportunity. Rupeek is perfectly poised to capitalize on this unique opportunity based on its innovative business model.”