Binny Bansal supports the online gold loan with Rupeek

Bengaluru: a five-year startup that helps consumers obtain loans against gold, has raised another $ 35 million in funds from Flipkart co-founder, US and China-based venture capital firm GGV Capital, Korea’s KB Investments and Flipkart CEO Kalyan Krishnamurthy-backed Tanglin Venture Partners.

The investment will take the valuation of Rupeek, which operates through a model without branches for the collection and return of homes, to more than $ 300 million. The last round will bring the total capital raised by Rupeek to around $ 70-75 million, with early sponsors including Sequoia Capital India and.

The startup is expected to disburse loans of around $ 28 million this month and plans to accelerate this further in 2020. The startup will use capital to expand from 10 cities to 30, develop the brand, establish a data science team and invest in your hardware product. which evaluates the quality of gold. The launch was created in 2015 by Sumit Maniyar, a former student of IIT-Bombay, who had previously co-founded the technology startup ed, Function Space, in addition to working at JP Morgan and Religare.

Gold loans serve as an overdraft or credit card for self-employed borrowers or even for the salaried class, who cannot obtain the loan amount or have the correct credit score, Maniyar said. The startup works with banks and NBFCs that are not active or that do not have the capabilities in the gold loan segment, taking advantage of their balance to lend. This gives these financial institutes the ability to expand into a market without opening their own branches and networks, while allowing Rupeek to lend at a rate that is 25-40% lower compared to the NBFCs, Maniyar said.

Rupeek also has its own NBFC, which it mainly uses to test new products or launch in new markets, while approximately 95% of the loan portfolio is through its partners. India's gold loan market is expected to reach Rs 4.6 lakh crore by 2022, growing at a compound rate of 13.4%, according to a recent KPMG report.

The sector has seen several NBFCs such as Muthoot and Manappuram Finance, which have created a loan portfolio of billions of dollars. “I'm excited about the way Rupeek opens access to formal credit for a large user base. Its solid client proposal and its partnership approach with banks is really a game changer for the unorganized gold lending space in India, said Bansal, who is also creating a $ 300-400 million venture capital fund to invest in new companies. Bansals other fintech investments include the general insurance player Acko.