Indiagold, the New Delhi-based gold-based lending platform, announced it has raised $12 million in fresh funding led by PayU, the financial technology arm of Prosus NV, and Alpha Wave Incubation, according to ETtech report.
Better Tomorrow Ventures, 3one4 Capital and Rainmatter Capital as well as existing investor Leo Capital participated in the funding round.
The capital will be used for expanding operations across the country in the next two years.
Founded in 2020 by Nitin Misra and Deepak Abbot, Indiagold essentially gives customers the option to store gold in lockers at much cheaper rates than traditional banks.
“India offers a large $650 billion addressable gold loan market which is highly fragmented and currently dominated by the informal segment,” Abbot and Misra said in a statement. “Even the formal segment hasn’t adopted digital practices at scale. Indiagold’s suite of financial products bridges this critical need gap…”
“Empowering disruptive fintech entrepreneurs through early-stage investments is a key element of PayU’s growth strategy,” said Vijay Agicha, global head of strategy and growth at PayU. “By supporting businesses that complement our existing portfolio, we aim to achieve our vision of developing a fintech ecosystem that will meet the financial services needs of millions of Indians.”
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