Rupeek, the online gold loan platform based in Bengaluru, has secured Rs 125 crore (approximately $15 million) in primary funding from Elevation Capital. This investment marks the second tranche of a new funding round, with 360 One Large Fund having previously contributed $6 million in May.
According to regulatory filings accessed from the Registrar of Companies (RoC), Rupeek’s board has approved the issuance of 5,801 compulsory convertible preference shares at an issue price of Rs 2,15,467 each to raise the Rs 125 crore.
Rupeek has already raised Rs 175 crore ($21 million) from Elevation and 360 One Large Fund, with an additional Rs 75 crore ($9 million) likely to come from Claypond Capital, the investment office of Ranjan Pai.
Sumit Maniyar, in collaboration with employees and early backer Bertelsmann, is considering offering shares valued at $8-10 million to Claypond Capital.
The valuation of Rupeek has experienced a significant decline, dropping from a peak of $634 million in January 2022 to an estimated $250 million in the current funding round. This decline reflects challenges in scaling operations, with revenue from operations declining 27.6% to Rs 89 crore in FY23 and losses amounting to Rs 281 crore in the same period. The company is yet to file its annual statements for FY24.
Rupeek competes directly with Oro Money, Ruptok, Yellow Metal, and indirectly with PayU-backed Indiagold in the gold loan segment.