Everyone loves gold, especially Indians. Not only is gold one of the most precious metals on the planet, it is also a good and reliable asset in the financial market. However, with great benefits come greater dangers, and this is something Indiagold has been working on. The young start-up raised $ 12 million in its Series A funding round led by financial services fintech PayU and Alpha Wave Incubation (AWI), managed by Falcon Edge Capital, marking PayU’s first venture in the industry. digital gold.
Better Tomorrow Ventures, 3one4 Capital, Rainmatter Capital and existing investor Leo Capital also participated in the round. The start-up has raised $ 14 million to date. Better Tomorrow Ventures, 3one4 Capital, Rainmatter Capital and existing investor Leo Capital also participated in the round.
The proceeds of the fundraising will be used to develop its activity. The company has ambitious plans to expand to 10 cities by year-end as it continues to work on expanding its product offerings.
Founded by former Paytm executives Nitin Misra and Deepak Abbot, the one-year-old Indiagold is known for providing gold loans and secure gold storage services, as well as allowing users to purchase gold. gold coins through its app and website. As the pandemic has led to an unprecedented increase in loans for jewelry, Indiagold’s efforts have been exemplary.
“India offers a large $ 650 billion addressable gold loan market that is highly fragmented and currently dominated by the informal segment,” Abbot and Misra said in a statement. “Even the formal segment hasn’t adopted large-scale digital practices. Indiagold’s range of financial products fills this critical gap in needs… ”
The fact that India’s gold financing business remains mostly offline and the informal segment accounts for 70% of gold lending highlights the need for start-ups like Indiagold, which claims to offer fast, secure solutions. and practices for monetizing household gold to meet specific needs. credit needs.
This, coming at a time when Indians are becoming more and more involved in the investment world, is perfect for Indiagold.
“We are proud to have the support of leading growth investors and see this as a reaffirmation of the inherent strength of our value proposition. With the support of our existing and new investors, we are aggressively moving towards our larger vision of establishing gold holdings as an alternative credit score and creating a gold credit platform for lenders to to provide instant credit for gold, ”added Misra and Abbot. It has a strong technology stack, AI-based gold valuation capabilities, and superior customer focus to deliver faster gold release and a transparent refund policy.
“Indiagold’s unique gold lending and gold locker products not only provide an unmatched customer experience, but also allow it to offer credit at more affordable rates. The traction that Indiagold has experienced in a short time is testament to its superior product capabilities and the deep experience of its genealogical founders. We believe the gold lending market is ripe for disruption and are delighted to support the founders of Indiagold, ”Navroz D. Udwadia, co-founder of Falcon Edge Capital, said in a statement.