New Delhi: Fintech Rupse, a startup that lends to gold as a guarantee, collecting $ 34 million to accelerate its efforts to monetize the personal stash of $ 1.5 trillion from precious metals.
The company based in Bangalore, which connects the technology of almost a dozen banks to individual borrowers, received support from investors including Lightbox, Edelsmann, took a assessment to $ 134 million so far.
The annual disbursement rate of the Rupeek was $ 1 billion in December, the first of the loan startup supported by Indian assets, according to a statement on Tuesday.
“The trajectory of the growth of the Rupeek changed dramatically and the volume of loans doubled in the second half of 2021,” Sumit Maniyar, founder and Chief Executive Officer, said in an interview.
“We are the first Fintech to reach a milestone of $ 1 billion.” Consumers in India – where gold is considered a symbol of status and popular investment – hold around $ 1.5 trillion from precious metals, mostly in jewelry, according to the world gold council.
But gold-supported loans only take into account around $ 150 billion, most of the loans of road corners and pawnshops, with traditional banks producing only 35%, according to CLSA estimates.
Rupeeks are one of a number of startups that are determined to shake centuries and help Indians do thousands of tons of metals they save.
Accel and Sequoia-Backed Capital Startups use technology to assess gold offered as collateral and reduce data to issue loans that monthly interest rates are 0.49% and can reach as high as 1.5%.
To help borrowers escape from the cultural stigma associated with gold guarantees, agents riding motorbikes conducting an assessment in the customer’s house, while the team returned in the office completing a background check and processing loans electronically.
“In many cities, our customers get money deposited in their bank account in 45 minutes, the speed of food delivery orders,” said Maniyar.
Established in 2015, the Rupeek plans to reach more than 120 cities at the end of the year, up from around 35 it operates at this time.
In addition to doorstep loans, now offering loans in physical branches and new credit cards supported by gold.
After receiving a non-banking financial company license from the Indian regulator, it has begun together with banking partners.
The capital of fundraising will be deployed to increase the loan book.
“We are very efficient and get here with capital less than $ 100 million,” said Maniyar.