Manipal, Axis Bank Eye Rupeek Investment, Recently Raised 51 Cr

Manipal Group chairman Ranjan Pai‘s investment office Claypond Capital and private sector lender Axis Bank are reportedly in discussions to invest in gold loan startup Rupeek. The investment round may witness a reduction in Rupeek’s valuation, with existing investors also expected to sell shares.

Sources familiar with the matter revealed that talks with Axis Bank are in preliminary stages, while Claypond Capital is considering the investment amount. The valuation of Rupeek is anticipated to be in the range of $200-250 million.

According to Registrar of Companies (RoC) filings, Rupeek recently secured approximately Rs 50 crore from asset management firm 360 One Asset, formerly known as IIFL Wealth and Asset Management, at a discounted valuation compared to its peak valuation of $600 million in July 2022.

Rupeek has encountered challenges amidst a slowdown in business and increased regulatory scrutiny on the sector, leading to discussions about a potential down round.

Axis Bank aims to deepen its partnership with Rupeek to offer doorstep gold loan services to its customers, following a robust increase in gold loan disbursals in recent months.

The regulatory environment has impacted investor sentiment and growth prospects in the gold loan sector, reflected in revised funding valuations.

Despite challenges, Rupeek has maintained stable asset quality and continues to attract investments from prominent investors.

Venture-funded startups in various sectors have witnessed valuation adjustments in response to market dynamics and regulatory changes.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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