IndiaGold, a gold-lending startup, has raised $12 million in its Series A round led by Prosus-owned PayU and Alpha Wave Incubation. Better Tomorrow Ventures, 3one4 Capital, Rainmatter Capital and Leo Capital also participated in the round.
The start-up which operates its services in Delhi NCR and Indore will use the raised funds to scale up its business and expand its offerings all over India.
Started in 2020, by two former Paytm executives Deepak Abbot and Nitin, who have a very good experience of leading one of India’s successful financial products Paytm. While IndiaGold issues instant gold loans and also secures gold locker services to more than a million consumers in India.
The start-up is building a new door-to-door gold loan business that is powered by a powerful stack of technology, AI-based gold assessment capabilities, and superior customer-centricity – providing fast gold extraction and a bright repayment policy.
Indiagold’s Gold Locker is the first of its kind in India, which reinvents locker services to make them more secure, transparent, and convenient.
Nitin Misra and Deepak Abbot, Co-founders of IndiaGold said, “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.”
Vijay Agicha, Global Head of Strategy & Growth at 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.”
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.”