Gold loan provider Rupeek is in advanced discussions to secure around ₹200 crore (approximately $24 million) in a new funding round. The round, comprising both primary and secondary transactions, will be led by new investor Elevation Capital, with participation from several existing investors.
Sources revealed to Inc42 that Elevation Capital will play a significant role in this funding round, which will value Rupeek at $250 million, a sharp decline of nearly 60% from its peak valuation of $600 million. As part of the secondary transaction, Rupeek employees will have the opportunity to sell their shares to investors.
Economic Times earlier reported that Ranjan Pai’s investment firm Claypond Capital is likely to join the funding round.
The financing round commenced earlier this month, with Rupeek already raising ₹51 crore from 360 One Large Value Fund (formerly IIFL Wealth Management) and BlackSoil.
Founded in 2015 by Sumit Maniyar and Ashwin Soni, Rupeek offers customized gold loans and other standard loan products backed by gold as collateral. The company operates in over 40 cities across India and serves a customer base exceeding 5 lakh.
Rupeek, backed by investors such as Peak XV Partners, Accel, GGV Capital, and Bertelsmann, has raised over $164 million in total funding to date.
For the fiscal year 2022-2023, Rupeek reported a 22% year-over-year reduction in net losses to ₹281.6 crore. However, the company’s operating revenue decreased by 27.7% to ₹88.9 crore in FY23, compared to ₹122.9 crore in the previous year.
In recent years, Rupeek has focused on profitability. As part of its efforts, the startup laid off nearly 250 employees in two rounds of layoffs during the ongoing funding winter.
