Bertelsmann India Investments, a local venture capital subsidiary of media group Bertelsmann, has led a $30m funding round for India-based lending service Rupeek, YourStory reported yesterday.
Venture capital firms Accel and Sequoia Capital India also participated in the round, having previously supplied $6.8m in series A funding for the company in February 2018. The series A had taken Rupeek’s total funding to about $9.3m and Sequoia India contributed as an existing backer.
Rupeek provides six-month loans to users who put up gold jewellery as collateral. The cash is sourced partly from banks and other financial services partners, and Rupeek claims it offers lower interest rates than rivals as well as no processing fees.
The company does not maintain any brock-and-mortar outlets, instead collecting the goods from users’ homes.
Pankaj Makkar, managing director of Bertelsmann India Investments, said: “Powered by state-of-the-art technology and an automated asset-light supply chain, Rupeek is transforming the way gold loans are disbursed in India.
“We are confident about [CEO Sumit Maniyar] and the team’s vision to establish Rupeek as the most trusted gold-loan brand in the country.”
The funding will be provided across two tranches according to the Economic Times, which reported that it will be used for product development and the expansion of Rupeek’s market presence.
