Fintech Startup Rupeek Raises INR 51 Cr In A Down Round From 360 One, BlackSoil

Gold loan provider Rupeek has raised INR 51 Cr in a down round from 360 One Large Value Fund (formerly IIFL Wealth Management) and BlackSoil. 

The fresh capital was raised at a third of the startup’s last estimated $600 Mn valuation in 2022. As per Inc42 analysis, the latest round pegged Rupeek at INR 1,785 Cr ($213 Mn as per current exchange rates), down 64.5% compared to 2022.  

As per regulatory filings seen by Inc42, the online gold loan platform raised INR 50 Cr from 360 One Large Value Fund while the remaining nearly INR 1 Cr (INR 99.45 Lakh to be precise) came from alternative investment firm BlackSoil. 

The development was first reported by Entrackr.

Rupeek’ board, on March 20, passed a resolution to allot 1,307 compulsory convertible preference shares (CCPS) at an issue price of INR 3,82,492 each to raise INR 50 Cr. Meanwhile, on May 2, the company’s board gave its nod to issue 26 CCPS at INR 3,82,492 per share to BlackSoil’s two funds.

As per the filings, the gold loan startup plans to use the fresh proceeds to accelerate growth, expansion, and for general corporate purposes. 

This comes just weeks after reports said Manipal Group chairman Ranjan Pai’s investment office Claypond Capital and Axis Bank were in early stages of talks to invest in the Peak XV Partners- backed startup. It was also reported then that the two investors had pegged Rupeek at a valuation of $200 Mn- $250 Mn, much lower than 2022’s $600 Mn.

Founded in 2015 by Sumit Maniyar and Ashwin Soni, Rupeek offers custom gold loans as well as other standard lending products with gold as collateral. It claims to be present in more than 40 cities across the country and have a customer base of more than 5 Lakh users.

Backed by the likes of Accel, GGV Capital, and Bertelsmann, the gold loan platform has raised more than $164 Mn in funding till date. 

Rupeek saw its net loss narrow more than 22% year-on-year (YoY) to INR 281.6 Cr in the financial year 2022-23. Meanwhile, operating revenue also declined 27.7% to INR 88.9 Cr in FY23 from INR 122.9 Cr in the previous year.

With the fundraise, Rupeek has become the latest Indian startup to raise a down round. While BYJU’S raised a rights issue at a steep hair cut of 99%, the likes of PharmEasy, Udaan and Sharechat have also raised funds at lower valuations in the past few months. 

This comes at a time when the funding winter continues to rage on. As investors tighten their purse strings, startups have been forced to focus on profitability and cut costs.