Gold loan platform 360 One Large Value Fund invested Rs 50 crore in Rupeek
Online platform for gold loans 360 One Large Value Fund (formerly IIFL Wealth Management) has contributed Rs 50 crore to Rupeek. It’s noteworthy that in the latest round, the company’s valuation fell by 60%.
In order to raise Rs 50 crore, the Rupeek board resolved to issue 1,307 compulsory convertible preference shares at an issue price of Rs 3,82,492 apiece, according to the company’s regulatory filing.
Depending on what the board of directors determines, the company will use these funds for general corporate operations, growth, and expansion.
The filing also indicates that the company raised approximately Rs 43 crore in FY24 from current investors, including Peak XV, Bertelsmann, Accel India, and GGV Investments.
Based on estimates from Fintrackr, the company is valued at approximately Rs 2,050 crore, or $250 million after allocation. Compared to Rupeek’s peak valuation of $634 million in January 2022, it appears that the company raised fresh capital at a 60% valuation haircut.
Rupeek was reportedly in talks to raise $200–250 million in funding from Axis Bank and Ranjan Pai’s investment office, Claypond Capital, according to a recent ET report.
Rupeek promises to expedite the entire process in 30 minutes, from underwriting to disbursal, and offers gold loan services.
To date, the company backed by Binny Bansal has raised approximately $150 million. PeakXV is the biggest external stakeholder, followed by Accel and Bertelsmann, according to media. 2.44% (post-allotment) are held by its newest investor, 360 One Large Value Fund.
Though the Bengaluru-based company has not yet released its FY24 financial statements, in FY23 it saw a 27.6% decrease in operating revenue to Rs 89 crore, while in the fiscal year that ended in March 2023 it incurred losses of Rs 281 crore.
Indiagold, which is backed by PayU, and Oro Money, Ruptok, and Yellow Metal are the main competitors of the Sumit Maniyar-led company.
As Rupeek’s peak valuation occurred not only during the height of the funding cycle but also after its performance failed to support those figures, there shouldn’t be any problems with the valuation haircut.
Too many founders give up trying to get more funding because they are fixated on a particular valuation figure.
Rupeek has obviously chosen not to dwell too much on the past and instead to concentrate on the future. Despite the recent difficult times, the founders’ continued credibility is demonstrated by the fact that it was able to find backers at the revised valuation figure.
