Ranjan Pai, Axis Bank In Talks To Invest In Gold Loan Startup Rupeek

Manipal Group chairman Ranjan Pai’s investment office Claypond Capital and Axis Bank are in early discussions to invest in gold loan startup Rupeek.

The round will likely see the value of the Accel and Peak XV Partners-backed startup being cut, and give partial exit of some existing investors, ET reported. 

“Pai’s office is looking to invest in Rupeek but the amount has not been finalised yet,” the report said, citing sources. The report further said that  Axis Bank’s involvement is going to be a key to the deal which is expected to be valued at $200 Mn- $250 Mn. 

The sources further added that the investment could be part of the partnership that Rupeek is building with Axis Bank for gold lending. The talks are still at an early stage though,” said a person in the know.

The gold loan startup raised a funding of INR 50 Cr from 360 ONE last month. The fresh capital was being raised at a discount of 60% from its valuation of $600 Mn estimated in 2022. 

For the financial year 2022-23, Rupeek reported a 22.7% narrowed loss of INR 281.6 Cr as the company managed to bring down its expenses, even though its income also fell.

Founded in 2015 by Sumit Maniyar and Ashwin Soni, Rupeek claims to be present in more than 40 cities in India and has a customer base of more than 500K. It aims to monetise India’s idle gold for lending. Rupeek also provides custom gold loans, along with a selection of standard lending with gold as collateral.

The startup had posted a net loss of INR 364.4 Cr in FY22 on a total revenue of INR 132.4 Cr.

The latest development comes a day after the RBI warned the banks of India about gold loans being offered by new fintech startups. Addressing the banks, RBI expressed concerns about the evaluation process made by these banks and fintechs, especially in the case of where the gold is sourced from.