Rupeek, a startup that provides loans in India by using India’s favourite metal Gold as a collateral, has secured fresh capital across two rounds. These two separate rounds, combining to be $60 million in total, were led by GGV Capital, Binny Bansal and Bertelsmann India Investments, among others.
Rupeek said that it will use the proceeds from the latest funding round to further invest in technology and to acquire customers. KB Investments, Tanglin Ventures, Sequoia India and Accel Partners have also participated in the funding rounds, the company said in a statement.
While there has been no official confirmation on the valuation, Bloomberg cites the valuation in the vicinity of $300 Million.
Rupeek provides a rather unique way for Indians to avail gold loans. Pledging gold jewelry for money isn’t viewed with the most respecting of eyes within the Indian cultural framework. Hence, Rupeek dispatches appraisers to prospective borrowers’ doorsteps to assess and pick up jewelry. Till date, the company claims to have disbursed loans worth of $28 million, said Sumit Maniyar, founder and chief executive officer. Considering that these figures stood at $1.5 million last year, thats a massive jump.
To put things in perspective and to clear how ‘favourite’ the yellow metal is, estimates suggest that Indians have over 25,000 tons of gold stored at home in some form or the other with a combined value of over $1 trillion. Calling those numbers staggering will be merely an understatement.
Rupeek now offers its service in 10 Indian cities.