Rupeek, an online gold loan platform, secured Rs 50 crore from 360 One Large Value Fund (formerly IIFL Wealth Management), marking a significant decline of 60% in its valuation in this latest funding round.
According to regulatory filings, Rupeek’s board approved the issuance of 1,307 compulsory convertible preference shares at a price of Rs 3,82,492 each, raising the aforementioned amount. These funds are earmarked for the company’s growth, expansion, and general corporate purposes.
In the fiscal year FY24, Rupeek also garnered approximately Rs 43 crore from existing investors such as Peak XV, Bertelsmann, Accel India, and GGV Investments.
Post-allotment, Rupeek’s valuation is estimated to be around Rs 2,050 crore or $250 million, reflecting a 60% decrease from its peak valuation of $634 million in January 2022, as per Fintrackr’s estimates.
Reports suggest that Rupeek is in discussions to raise funds from Claypond Capital, backed by Ranjan Pai, and Axis Bank, valuing the company between $200-250 million.
Rupeek specializes in gold loan services, boasting a streamlined process from underwriting to disbursal within 30 minutes.
Backed by Binny Bansal, Rupeek has raised approximately $150 million so far, with PeakXV being the largest external stakeholder, followed by Accel and Bertelsmann.
Despite a revenue decline of 27.6% to Rs 89 crore in FY23 and losses amounting to Rs 281 crore, Rupeek faces competition from Oro Money, Ruptok, Yellow Metal, and Indiagold, partially backed by PayU.
The company’s pragmatic approach towards its valuation decline underscores its focus on future growth prospects, which has garnered continued support from investors, reflecting the founders’ credibility despite recent challenges.