Online gold loan platform Rupeek has secured Rs 125 crore (approximately $15 million) in primary funding from Elevation Capital. This is the second tranche of the new round in which 360 One Large Fund had already put in $6 million during May.
According to Rupeek’s regulatory filing, which can be accessed through the Registrar of Companies (RoC), the board approved a special resolution to issue 5,801 compulsory convertible preference shares at an issue price of Rs 2,15,467 apiece in order to raise Rs 125 crore.
Relative to the funding details, the Bengaluru-based company looks to close this round at about Rs 250 crore, according to sources. Although Elevation and 360 One Large Fund have contributed Rs 175 crore ($21 million) to Rupeek’s fundraising efforts, sources indicate that Ranjan Pai’s investment firm Claypond Capital will likely provide the remaining Rs 75 crore ($9 million).
“Sumit Maniyar along with employees and Rupeek’s early backer Bertelsmann may dilute around $8-10 million worth shares to Claypond Capital,” said one of the sources requesting anonymity.
To date, the company backed by Binny Bansal has raised approximately $165 million. PeakXV was the biggest external stakeholder as of the most recent tranche, followed by Accel and Bertelsmann, according to the startup data intelligence platform TheKredible. Prior to this tranche, 2.44% of the company is held by 360 One Large Value Fund.
Gold loan provider Rupeek has been having difficulty growing and has seen a 60% decline in value. In January 2022, the company’s valuation peaked at $634 million, but during the current round, its value fell precipitously to $250 million.
The sharp decline in Rupeek’s scale was the cause of the valuation cut. The company’s operating revenue decreased by 27.6% to Rs 89 crore in FY23, while losses during the same period totaled Rs 281 crore. The company still hasn’t submitted its FY24 annual statements.
Direct rivals of the Sumit Maniyar-led company include Oro Money, Ruptok, Yellow Metal, and to a lesser degree, Indiagold, which is supported by PayU.
