The startup is raising around $7.4 Mn from Accel India, Bertelmann, ZNL Growth Fund, and Sequoia, among others
The development comes three months after the gold loan provider laid off 200 employees due to a ‘subdued macroeconomic environment’
In January this year, Rupeek raised $34 Mn in a funding round led by Lightbox
Gold loan provider startup Rupeek is raising close to $7.4 Mn from Accel India, Sequoia Capital, Bertelsmann, among others. In what seems to be a tranche of a new funding round, Rupeek is allotting 598 Series E2 compulsorily convertible preference shares (CCPS) at an issue price of INR 9,91,072 apiece.
In an extraordinary general meeting held on August 30, 2022, the startup’s shareholders approved allotment of E2 CCPS to Sequoia Capital, Accel India, Bertelsmann, ZNL Growth Fund, among others, according to regulatory filings.
Of the $7.4 Mn, Rupeek has already received $4.5 Mn (INR 36 Cr) from institutional investors such as Accel and Bertelsmann, the regulatory filings showed.
The development comes almost three months after Rupeek laid off around 200 employees as part of cost restructuring. A company spokesperson had cited a ‘subdued macroeconomic environment’ as the reason behind the layoffs.
“The subdued macroeconomic environment has compelled us to re-calibrate our strategy, relook at our costs and make our organization structure leaner, so as to support our sustenance and growth,” the spokesperson said.
Earlier this year, the startup raised close to $34 Mn in a round led by Lightbox, GGV Capital, and Bertelsmann at a valuation of $634 Mn. During the fundraise announcement, Rupeek said it intended to grow aggressively and expand its lender network to over 120 cities from 30 cities then.
Founded in 2015 by Sumit Maniyar and Ashwin Soni, Rupeek provides instant gold loans.
The startup reported narrowing of its loss to INR 156 Cr in FY21 from INR 487 Cr in FY20, while its total revenue grew to INR 88.5 Cr from INR 31.9 Cr in FY20. Its expenses rose to INR 245 Cr in FY21 from INR 519 Cr in FY20. .
As per Inc42 report, India’s fintech market is expected to touch $1.3 Tn by 2025. The sector is already the second highest funded sector in the startup ecosystem and has already raised $24 Bn in funding between 2014 and H1 of 2022.