Digital gold loan company Indiagold raises $12 million from PayU and others

• Indiagold claims to offer gold-backed loans, gold savings and gold locker services to over a million users in India.
• PayU is also an investor in state-run NPCI and payments platform Dot.Pe and more.
• Indiagold will use the $12 million funding to scale its business and roll out operations nationally.

Indiagold, a fintech startup that offers gold loans, has raised $12 million funding to scale its business and roll out operations nationally.

The Series A round was led by financial services platform PayU and Alpha Wave Incubation (AWI), which is a fund managed by Falcon Edge Capital. Better Tomorrow Ventures, 3one4 Capital, Rainmatter Capital and existing investor Leo Capital also participated in the round.

“Empowering disruptive fintech entrepreneurs through early-stage investments is a key element of PayU’s growth strategy. By supporting businesses that complement our existing portfolio, we aim to achieve our vision of developing a fintech ecosystem that will meet the financial services needs of millions of Indians,” said Vijay Agicha, global head of strategy and growth at PayU.

PayU is also an investor in state-run National Payments Corporation of India (NPCI) payments platform DotPe. It also acquired loan company PaySense last year.

Launched in 2020 by Nitin Misra and Deepak Abbot, Indiagold offers gold-backed loans, gold savings and gold locker services. The company aims to digitise lending against gold in India.

The company claims to be building a “doorstep” gold loan business that is powered by a technology stack, artificial intelligence (AI)-based gold assessment capabilities and faster gold release as well as a transparent repayment policy.

Co-founders Misra and Abbot, in a joint statement, highlighted that India offers a larger $650 billion addressable gold loan market, but it is highly fragmented and currently dominated by the informal segment. The company further claimed that 70% of gold loans demand in India are currently catered by the informal sector.

Misra and Abbot have previously worked at digital payments giant Paytm. Misra has also been associated with GE Capital, NIIT, Airtel and Samsung. Abbot has worked with CyberMedia, Times Internet, Satyam Computers, Zapak Digital Entertainment and Get Smart App.

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