$1 billion a year in gold-backed loans : Rupeek Fintech Achievement.

This article is highlighting Rupeek Fintech, a startup that lends against gold as collateral, raised $34 million to accelerate its efforts to  monetise India’s $1.5 trillion private stash of the precious  metal. The Bangalore-based firm, whose technology links nearly a dozen banks to individual borrowers, received backing from investors including Lightbox, GGV Capital and Bertelsmann, taking its valuation to $634 million with $134 million raised so far. Rupeek’s annual loan disbursement rate was $1 billion in December, a first among India’s asset-backed lending startups, according to a statement on Tuesday.. 

“Rupeek’s growth trajectory changed dramatically and loan volumes doubled in the second half of 2021,” Sumit Maniyar,  ..founder and chief executive officer, said in an interview. “We are the first fintech to hit $1 billion milestone.”  Consumers in India -- where gold is considered both a status  symbol and a popular investment -- hold about $1.5 trillion  of the precious metal, mostly in jewelry, according to the World Gold Council. But gold-backed loans account for only about $150 billion, mostly from street-corner money  lenders and pawnbrokers, with traditional banks making up  just 35%, according to CLSA estimates.

Author CA.Dr. Gaurav Bhambri