Indiagold secures New $10 Million Funding

Indiagold a fintech firm has reportedly secured $10 Mn in an extended Series A funding round from its existing investors – Alpha Wave, 3one4 Capital, PayU, and Leo Capital.

As per the regulatory filings, Indiagold allotted 5,323 Series A1 compulsory convertible preference shares (CCPS) at an issuance price of INR 1.45 Lakh apiece to raise about $10 Mn.

Alpha Wave infused INR 38.76 Cr in the startup, followed by 3one4 Capital, PayU and Leo Capital, which invested INR 19.38 Cr, INR 11.62 Cr and INR 7.75 Cr, respectively.

The change occurs a year after Alpha Wave Incubation (AWI) fund and PayU led a $12 million Series A round of funding for Indiagold. The Indiagold funding round also included participation from Better Tomorrow Ventures, 3one4 Capital, RainmatterCapital, and current investor Leo Capital.

Indiagold, a company founded in 2020 by Nitin Misra and Deepak Abbot, offers savings and loans backed by gold. Customers can also use its gold locker services.

Indiagold offer Customers can store gold with Indiagold and receive 5-6% annual interest on their gold deposits. Additionally, it offers customers credit for digital gold worth up to INR 60K.

What does Indiagold Do?

Indiagold, builds a full-stack solution combined with on ground execution to digitise these interactions. Just like Uber did with taxis!. It combines prudent asset-liability management and credit cost discipline with advance algorithms and app based operations to drive operational efficiencies for our banking partners.

The startup received an undisclosed amount of funding from the Blume Founders Fund of venture capital firm Blume Ventures in January 2021.

It has partnered with a number of banks and NBFCs, including Small Finance Bank, Piramal Capital, Housing Finance, and Liquiloans, to provide gold-backed credit.

As per the RoC filings, its revenue climbed 6.9x to INR 2.76 Cr in the financial year 2021-22 (FY22) against INR 40 Lakh revenue a year ago. Meanwhile, its losses swelled more than 5x to INR 28.7 Cr in FY22, as compared to INR 5.5 Cr losses incurred in FY21.

In India, the company competes with the likes of Rupeek, Jar, Bold Finance, and Fello, among others.

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