Exclusive: Fintech Startup Rupeek To Raise $16 Mn From Accel, Sequoia Capital

SUMMARY

The startup has already raised $7.4 Mn from Accel India, Bertelsmann, ZNL Growth Fund, and Sequoia, among others

The development comes three months after the gold loan provider laid off 200 employees due to a ‘subdued macroeconomic environment’

In January this year, Rupeek raised $34 Mn in a funding round led by Lightbox

Gold loan provider startup Rupeek is raising close to $16 Mn in a fresh round of funding from Accel India, Sequoia Capital, among others, people close to the development informed Inc42 on the condition of anonymity. The funding round will also see participation from investors like Bertelsmann and ZNL Growth Fund.

The startup is in advanced stages of receiving $7.4 Mn from Accel India, Sequoia Capital, Bertelsmann, among others, its regulatory filings showed.

In an extraordinary general meeting held on August 30, 2022, the startup’s shareholders approved allotment of E2 CCPS to Sequoia Capital, Accel India, Bertelsmann, ZNL Growth Fund, among others, at an issue price of INR 9,91,072 apiece, according to the filings.

The development comes almost three months after Rupeek laid off around 200 employees as part of cost restructuring. A company spokesperson had cited a ‘subdued macroeconomic environment’ as the reason behind the layoffs.

“The subdued macroeconomic environment has compelled us to re-calibrate our strategy, relook at our costs and make our organization structure leaner, so as to support our sustenance and growth,” the spokesperson said.

As per sources, the startup is eyeing to achieve profitability in next 12 to 18 months.

Earlier this year, the startup raised close to $34 Mn in a round led by Lightbox, GGV Capital, and Bertelsmann at a valuation of $634 Mn. During the fundraise announcement, Rupeek said it intended to grow aggressively and expand its lender network to over 120 cities from 30 cities then.

Founded in 2015 by Sumit Maniyar and Ashwin Soni, Rupeek provides instant gold loans.

The startup reported narrowing of its loss to INR 156 Cr in FY21 from INR 487 Cr in FY20, while its total revenue grew to INR 88.5 Cr from INR 31.9 Cr in FY20. Its expenses dropped to INR 245 Cr in FY21 from INR 519 Cr in FY20. .

As per Inc42 report, India’s fintech market is expected to touch $1.3 Tn by 2025. The sector is already the second highest funded sector in the startup ecosystem and has already raised $24 Bn in funding between 2014 and H1 of 2022.