Fintech Startup Indiagold Raises $22 Mn Funding From Alpha Wave, Others

Fintech startup Indiagold has reportedly raised $22 Mn in an extended Series A funding round from its existing investors – Alpha Wave, 3one4 Capital, PayU, and Leo Capital. 

As per the regulatory filings, Indiagold allotted 5,323 Series A1 compulsory convertible preference shares (CCPS) at an issuance price of INR 1.45 Lakh apiece to raise about $22 Mn. 

Alpha Wave infused INR 38.76 Cr in the startup, followed by 3one4 Capital, PayU and Leo Capital, which invested INR 19.38 Cr, INR 11.62 Cr and INR 7.75 Cr, respectively.

The development comes a year after Indiagold raised $12 Mn in a Series A round led by Alpha Wave Incubation (AWI) fund and PayU. Better Tomorrow Ventures, 3one4 Capital, RainmatterCapital, and existing investor Leo Capital had also participated in the funding round.

Set up in 2020 by Nitin Misra and Deepak Abbot, Indiagold offers gold-backed loans and savings. It also offers gold locker services to consumers.  

Indiagold allows customers to store gold and earn 5-6% annual interest on their gold deposits. It also provides them credit up to INR 60K against digital gold. 

In January 2021, the startup received an undisclosed amount of funding from venture capital firm Blume Ventures’ Blume Founders Fund.

To offer gold-backed credit, it has partnered with several banks and NBFCs such as Small Finance Bank, Piramal Capital, Housing Finance, and Liquiloans. 

As per the RoC filings, its revenue climbed 6.9x to INR 2.76 Cr in the financial year 2021-22 (FY22) against INR 40 Lakh revenue a year ago. Meanwhile, its losses swelled more than 5x to INR 28.7 Cr in FY22, as compared to INR 5.5 Cr losses incurred in FY21.

In India, the company competes with the likes of Rupeek, Jar, Bold Finance, and Fello, among others. 

As per a report, the country’s investment tech market was pegged at $20 Bn in 2020. The industry is set to become a $60 Bn space by FY25.

Recently, a series of developments have occurred in the investment tech sector. This month, Bold Finance secured $1.5 Mn in seed funding led by Kae Capital. Its existing investors Antler India, Nitin Gupta from Uni Cards, Ishpreet Gandhi from Stride Venture, Shashikant Dola from McKinsey, Tushar Mehndiratta from Avail Finance, and Vadiraj Kulkarni from ITC PSPD participated in the round. 

In August, fintech startup Jar secured $22.6 Mn in a Series B funding round led by Tiger Global. Following the transaction, its valuation increased to $300 Mn. Investors Arkam Ventures, Eximius Ventures, Force Ventures, LetsVenture, Rocketship Venture Capital and WEH Ventures participated in the round. 

The development was first reported by Entrackr