Gold lender startup Rupeek raises $7.4 million from Accel India, Sequoia Capital, and Bertelsmann among others. In what appears to be a tranche of a new funding round, Rupeek is allotting Compulsorily Convertible Preference Shares (CCPS) Series E2 at an issue price of INR 9,91,072 each.
At an extraordinary general meeting held on August 30, 2022, the startup’s shareholders approved the allotment of E2 CCPS to Sequoia Capital, Accel India, Bertelsmann, ZNL Growth Fund, among others, according to regulatory filings.
Of the $7.4 mn, Rupeek has already received USD 4.5 mn (INR 36 Cr) from institutional investors such as Accel and Bertelsmann, regulatory filings showed.
Founded by Amar Prabhu, Ashwin Soni, Sumit Maniyar Rupeek in 2015, Rupeek is a financial services company that features an online lending platform that specializes in credit risk, gold loans, and personal loans. It offers lending solutions for lenders and borrowers.
The company is driven by its mission is to bring financial inclusion for the masses and introduce products that are transparent and people-friendly. Rupeek has shown an annual disbursement run rate of $1 billion in December 2021.
The development comes nearly three months after Rupeek laid off around 200 employees as part of a cost restructuring. A company spokesman cited a “subdued macroeconomic environment” as the reason for the layoffs.
The subdued macroeconomic environment has prompted us to recalibrate our strategy, reassess our costs and slim our organizational structure to support our sustainability and growth.
Earlier this year, the startup raised nearly $34 million at a $634 million valuation in a round led by Lightbox, GGV Capital and Bertelsmann. During the fundraising announcement, Rupeek said it intends to grow aggressively and expand its lender network to over 120 cities from the then 30 cities.
The startup reported a reduction in its loss to INR 156 cr in FY21 from INR 487 cr in FY20, while its total revenue rose to INR 88.5 cr from INR 31.9 cr in FY20. Its costs rose to INR 245 cr in FY21.