Sequoia Backed Rupeek’s Loss Widens By 2X To INR 364 Cr In FY22, Sales Increases To INR 97 Cr

Sequoia-backed gold loan startup Rupeek saw its total consolidated loss climb by 133% in the financial year ending on March 31, 2022. The Bengaluru-based fintech startup has incurred a total loss of INR 364.3 Cr, a 2.3X jump from INR 156.3 Cr in FY21. 

Rupeek saw its total revenue climb to INR 132.4 Cr in FY21, a 49% jump from INR 88.5 Cr it had generated in the financial year ending on March 31, 2021. Of this, it has earned INR 97.4 Cr through its operations, a 1.5X jump from INR 62.8 Cr in FY21. 

The startup acts as business correspondent to banks and financial institutions (lending partners) and offers gold loans through its own technology to consumers. Rupeek earns revenue through the commission fees from the lending partners. Further, it partners with Federal Bank, ICICI Bank, Indian Bank, Karur Vysya Bank, among others. 

In FY22, the startup generated INR 34.9 Cr through its other source of income, in FY21, it earned INR 25.6 Cr. Source of other income mostly comprises interest earned on the startup’s investment. 

In FY22, the startup has spent a total of INR 499.4 Cr, a 103% jump from INR 245.2 Cr in FY21. Rupeek spent INR 178 Cr for employee benefit expenses in FY22 which is a 1.4X jump from INR 120 Cr in FY21. Employee benefit expenses comprise of employee salaries, PF contributions, gratuity, and other employee welfare benefits. It must be noted that the startup has laid off a total of around 230 employees in two tranches in June and September.  

Apart from this, the startup has spent INR 130.3 Cr for advertisement and promotional expenses. This is a 3X jump from INR 39.8 Cr it has spent for the same cause in FY21. Further, its depreciation, depletion, and amortisation expense was INR 27.7 Cr, a noticeable jump from INR 10.6 Cr in FY21. It is prudent to note that Rupeek has spent INR 3.7 to earn a rupee from sales in FY22. 

Founded in 2015 by Sumit Maniyar and Ashwin Soni, Rupeek provides instant gold loans at doorstep and through bank branches. The startup is currently operational in more than 60 cities across 5,000 locations. It offers loans within 30 minutes at doorstep, or the customer can even visit a bank branch. 

Earlier this year, Rupeek raised $34 Mn in funding led by Lightbox, GGV Capital, and Bertelsmann at a valuation of about $630 Mn. In September this year, Inc42 exclusively reported that the startup is in talks to raise additional capital worth $16 Mn from Accel India, Sequoia Capital, among others. The round will further see participation from ZNL Growth Fund, and Bertelsmann. 

The startup to date has raised over $170 Mn in multiple rounds of funding. Rupeek competes against the likes of Ruptok, Bold Finance, India Gold, among others. As per Inc42 report, lendingtech sub sector is the fast growing segment in the fintech space. The lending tech sector is estimated to grow at a 32% CAGR and have a market opportunity to reach $616 Bn by 2025.

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