Rupeek in talk with Lee Fixel’s fund, May raise $100 Mn

As gold costs rise, fintech startup Rupeek has been getting substantial investor premium over the most recent couple of months. The gold advance startup is in discussions with a few development stage investors to raise up to $100 million, said three individuals mindful of the subtleties of the discussion. 


In the event that this experiences, it would be the organization's second financing round in 2020. Rupeek raised $30 million from Binny Bansal, GGV Capital and Korea's KB Investments in February. 


"A few investors including Lee Fixel's funding firm Addition are in converses with Rupeek," said one of the individuals on state of namelessness. "Existing investors would likewise twofold down their investment in the organization." 


Sequoia Capital, Accel Partners and Bertelsmann are Rupeek's initial benefactors. Sources accentuated that these three investors are relied upon to join the crisp financing round. 


"Rupeek has been seeing critical inbound premium from investors. The organization could be esteemed over $550 million in the new round," said the subsequent source. The individual mentioned obscurity too. "Discussion with Addition has arrived at a late stage." 


As of now, Rupeek is dispensing over Rs 350 crore credit consistently. The organization has collaborated with Karur Vysya Bank and Federal Bank. As indicated by a MoneyControl report, it's additionally in converses with installed Axis Bank and Catholic Syrian Bank. 


One investment banker likewise said that this gather pledges is significant for Rupeek as it hopes to begin crediting cash on their books too. "Rupeek has enough cash in the bank, yet they need to raise this round with the goal that they can start dispensing credits on their own books too," said the investment banker, mentioning secrecy. 


Questions shipped off Rupeek, Accel and GGV stayed unanswered until the hour of distributing this story. We will refresh as and when they react. 


Rupeek offers advances against gold carefully and had no immediate rivalry up to this point. Deepak Abbot and Nitin Misra's indiagold is an immediate contender that entered the gold credit area early this year. indiagold is attempting to fabricate a gold-upheld open credit organization and has right now dispatched gold advances in Delhi NCR according to their application. 


Aside from that, Rupeek's essential rivalry originates from set up players like Muthoot Finance and Manappuram Finance which give out around 70% of the gold credits in the nation. As gold costs have taken off this year, combined with an expansion in a need to manage money related pressure because of the pandemic, gold advances have seen a flood, bringing organizations like Rupeek to the spotlight. 


The RBI, not long ago, additionally expanded the credit to-esteem proportion on gold advances from 75% to 90% in an offer to give alleviation to borrowers.