GGV, BII lead $60m round for Indian gold loan start-up

Flipkart co-founder Binny Bansal, KB Investments, Tanglin Ventures, Sequoia Capital India and Accel Partners also took part. Previously, Rupeek received $30 million last year in a round led by Bertelsmann. Other investors include Lok Capital.

Founded in 2015, Rupeek provides six-month loans backed by gold as collateral. It accepts gold in various forms including jewelry. Loan applications can be done on an app with gold items picked up in person or at 700 branches across the country.

Gold is a prominent safe haven asset within an Indian household. Apart from jewelry, it is also used as an offering during religious ceremonies and presented at weddings. Last year, it was the country's second-largest import after crude oil. Gold is often provided as collateral for short-term loans by small businesses. 

According to KPMG, the size of the organized gold loan market, comprising banks and non-banking financial companies, was INR2.9 trillion ($40.7 billion) last year. However, 65% of the market is designated unorganized.

“For India’s middle-class households, gold has long been a favourite way to save and invest. Rather than letting it sit idle, Rupeek has turned a family’s dormant asset into an easy way to get a loan at affordable rates to grow their small business or pay for emergency needs,” said Hans Tung, a managing partner at GGV.

In India, GGV has also invested in Khatabook, a record-keeper for small businesses, edtech start-up Vedantu and online B2B marketplace Udaan.

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• Topics
• South Asia
• Financials
• Technology
• Expansion
• India
• GGV Capital
• Fintech
• Bertelsmann Asia Investments