Gold-focussed digital credit platform indiagold has announced the raise of $12M funding led by PayU, the payments and fintech business of Prosus, and Alpha Wave Incubation Fund, which is backed by DisruptAD and managed by Falcon Edge Capital. Better Tomorrow Ventures, 3one4 Capital, RainmatterCapital, and existing investor, Leo Capital will also participate in the round.
It will use the funds to scale the business and roll out operations nationally.
Nitin Misra and Deepak Abbot, Co-founders, indiagold said in a statement shared by the company, “India offers a large $650 billion addressable gold loan market which is highly fragmented and currently dominated by the informal segment. Even the formal segment hasn’t adopted digital practices at scale. indiagold’s suite of financial products bridges this critical need gap by digitally transforming lending against gold. We are proud to have the backing of industry-leading growth investors and take it as a reaffirmation of the inherent strength of our value proposition. With the support of our existing and new investors, we are moving aggressively towards our larger vision of establishing gold holdings as an alternate credit score, and creating a gold back credit platform for lenders to provide instant credit against gold.”
Founded in 2020, the startup offers gold-backed loans, gold savings, and gold locker services to over a million consumers in India. The founders Deepak Abbot and Nitin Misra have a strong track record of creating and leading some of India’s most successful financial products for Paytm.
Vijay Agicha, Global Head of Strategy & Growth, PayU said, “Empowering disruptive fintech entrepreneurs through early-stage investments is a key element of PayU’s growth strategy. By supporting businesses that complement our existing portfolio, we aim to achieve our vision of developing a fintech ecosystem that will meet the financial services needs of millions of Indians. We are very impressed with Deepak and Nitin’s proven record of developing financial products at scale and have faith in their ability to build a profitable business. We believe that indiagold has the unique opportunity to expand the addressable market on the back of its product offerings and scale the business up significantly. PayU is excited to partner with indiagold in its journey to digitally transform lending against gold.”
The company is building an innovative doorstep gold loan business that is powered by a robust technology stack, AI-based gold assessment capabilities, and superior customer-centricity – offering faster gold release and a transparent repayment policy. indiagold’s Gold Locker is India’s first locker service that completely reinvents locker services to make them more secure, transparent, and convenient.
Navroz D. Udwadia, Co-founder of Falcon Edge Capital said, “We are impressed by indiagold’s vision and its proprietary technology to solve critical painpoints plaguing the gold loan industry in India. Gold, found in almost every household in India, is the key to provide affordable credit to every Indian. indiagold’s unique doorstep gold loan and gold locker products not only offer unparalleled customer experience but also enable it to offer credit at more affordable rates. The traction indiagold has seen in a short time is a testament to its superior product capabilities and the deep experience of its pedigreed founders. We believe the gold loan market is ripe for disruption and are thrilled to back indiagold’s founders.”
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