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Rupeek Secures Rs 50 Crore Funding Amidst Valuation Drop

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Rupeek, the online gold loan platform, has successfully raised Rs 50 crore from 360 One Large Value Fund (formerly IIFL Wealth Management), despite experiencing a significant 60% drop in valuation since its peak in January 2022. The new funding round places the company’s valuation at approximately Rs 2,050 crore ($250 million).

According to the latest regulatory filings, Rupeek issued 1,307 compulsory convertible preference shares at a price of Rs 3,82,492 each to secure the investment. The company plans to utilize the funds for growth, expansion, and general corporate purposes as determined by the board.

In the fiscal year 2024, Rupeek has also raised around Rs 43 crore from existing investors, including Peak XV, Bertelsmann, Accel India, and GGV Investments. This follows a report from Economic Times stating that Rupeek was negotiating additional funding from Ranjan Pai’s Claypond Capital and Axis Bank, targeting a valuation between $200-250 million.

Founded in Bengaluru and backed by notable figures such as Binny Bansal, Rupeek aims to revolutionize the gold loan market by offering rapid processing times, claiming to manage the entire loan disbursement process within 30 minutes.

Despite a downturn in the previous fiscal year, where Rupeek reported a 27.6% decline in revenue to Rs 89 crore and losses amounting to Rs 281 crore, the firm remains a significant player in the sector. Competing with entities like Oro Money, Ruptok, Yellow Metal, and indirectly with PayU-backed Indiagold, Rupeek has raised about $150 million to date.

According to startup data intelligence platform TheKredible, PeakXV remains the largest external stakeholder, followed by Accel and Bertelsmann, with new investor 360 One Large Value Fund now holding a 2.44% stake post-allotment.

The leadership at Rupeek, led by CEO Sumit Maniyar, has chosen to focus on forward-looking strategies rather than dwelling on past valuation figures. This pragmatic approach has allowed Rupeek to secure new investment and maintain credibility among its investors, even during challenging times. The company continues to push for expansion and innovation in the gold loan industry, underlining its resilience and commitment to evolving market demands.