New Delhi: Rupeck Fintech, a startup that lends against gold as collateral, raised $34 million to accelerate its efforts to monetize India’s $1.5 trillion private reserves of the precious metal.
The Bangalore-based firm, whose technology connects nearly a dozen banks with individual borrowers, received backing from investors including Lightbox, GGV Capital and Bertelsmann, with its valuation rising to $634 million with $134 million to date.
According to a statement on Tuesday, Rupeck’s annual loan disbursement rate stood at $1 billion in December, the first among India’s asset-backed lending startups.
“Rupik’s growth trajectory changed dramatically and the loan volume doubled in the second half of 2021,” Founder and CEO Sumit Maniyar said in an interview. “We are the first fintech to achieve the $1 billion milestone.”
According to the World Gold Council, consumers in India – where gold is considered both a status symbol and a popular investment – own about $1.5 trillion of the precious metal, mostly in jewelry. But gold-backed loans account for only $150 billion, mostly from roadside moneylenders and moneylenders, with traditional banks making up only 35%, according to CLSA estimates.
Rupeck is one of several startups determined to shake up the age-old business and help Indians mine thousands of tons of metal.
The Accel and Sequoia Capital-backed startup uses technology to assess gold offered as collateral and crunches data to issue loans that have a monthly interest rate of 0.49% and can reach 1.5% .
To help borrowers avoid the cultural stigma associated with pledging gold, motorcycle-riding agents conduct assessments inside customers’ homes, while teams in offices complete background checks and process loans electronically. Huh.
“In many cities, our customers get money deposited into their bank accounts in 45 minutes, the speed of a food delivery order,” Maniyar said.
Founded in 2015, Rupeck plans to reach over 120 cities by the end of the year, currently operating in around 35 cities.
In addition to doorstep lending, it now offers physical branches as well as a new gold-backed credit card. After obtaining Non-Banking Financial Company license from Indian regulators, it has started giving co-lending with banking partners. The fundraising capital will be deployed to boost its loan book.
“We are extremely capital efficient and have come here with less than $100 million in capital,” Maniyar said.
The Bangalore-based firm, whose technology connects nearly a dozen banks with individual borrowers, received backing from investors including Lightbox, GGV Capital and Bertelsmann, with its valuation rising to $634 million with $134 million to date.
According to a statement on Tuesday, Rupeck’s annual loan disbursement rate stood at $1 billion in December, the first among India’s asset-backed lending startups.
“Rupik’s growth trajectory changed dramatically and the loan volume doubled in the second half of 2021,” Founder and CEO Sumit Maniyar said in an interview. “We are the first fintech to achieve the $1 billion milestone.”
According to the World Gold Council, consumers in India – where gold is considered both a status symbol and a popular investment – own about $1.5 trillion of the precious metal, mostly in jewelry. But gold-backed loans account for only $150 billion, mostly from roadside moneylenders and moneylenders, with traditional banks making up only 35%, according to CLSA estimates.
Rupeck is one of several startups determined to shake up the age-old business and help Indians mine thousands of tons of metal.
The Accel and Sequoia Capital-backed startup uses technology to assess gold offered as collateral and crunches data to issue loans that have a monthly interest rate of 0.49% and can reach 1.5% .
To help borrowers avoid the cultural stigma associated with pledging gold, motorcycle-riding agents conduct assessments inside customers’ homes, while teams in offices complete background checks and process loans electronically. Huh.
“In many cities, our customers get money deposited into their bank accounts in 45 minutes, the speed of a food delivery order,” Maniyar said.
Founded in 2015, Rupeck plans to reach over 120 cities by the end of the year, currently operating in around 35 cities.
In addition to doorstep lending, it now offers physical branches as well as a new gold-backed credit card. After obtaining Non-Banking Financial Company license from Indian regulators, it has started giving co-lending with banking partners. The fundraising capital will be deployed to boost its loan book.
“We are extremely capital efficient and have come here with less than $100 million in capital,” Maniyar said.
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