PayU, Prosus’ payments and fintech firm, and Alpha Wave Incubation Fund, which is funded by DisruptAD and managed by Falcon Edge Capital, are leading a $12 million fundraising round for indiagold, a gold-focused digital alternative credit platform. The round will also include participation from Better Tomorrow Ventures, 3one4 Capital, RainmatterCapital, and Leo Capital, an existing investor. The monies will be used to grow the company and expand its activities across the country.
Nitin Misra and Deepak Abbot, Co-founders, indiagold said in a statement shared by the company, “India offers a large $650 billion addressable gold loan market which is highly fragmented and currently dominated by the informal segment. Even the formal segment hasn’t adopted digital practices at scale. indiagold’s suite of financial products bridges this critical need gap by digitally transforming lending against gold. We are proud to have the backing of industry-leading growth investors and take it as a reaffirmation of the inherent strength of our value proposition. With the support of our existing and new investors, we are moving aggressively towards our larger vision of establishing gold holdings as an alternate credit score, and creating a gold back credit platform for lenders to provide instant credit against gold.”
Indiagold was created in 2020, and it now serves over a million customers in India with gold-backed loans, gold savings, and gold locker services. Deepak Abbot and Nitin Misra, Paytm’s co-founders, have a long history of building and directing some of India’s most successful financial businesses. The company is developing an innovative doorstep gold lending business based on a strong technology stack, AI-based gold evaluation skills, and superior customer-centricity, with speedier gold release and a clear repayment policy. Indiagold’s Gold Locker is the country’s first locker service, entirely reinventing locker services to make them safer, more transparent, and more convenient.