The company plans to use the fund to start operations in Jaipur and Mumbai by March 2021 and aims to expand the business in up to 22 cities by FY23.
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January 25, 2021
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New Delhi-based fintech platform for gold lending Ruptok Fintech Private Limited announced on Monday that it had raised INR 10 crore in an angel funding round led by Canadian investment firm Wurk.
The startup was said to be working to offer logistics and technology solutions for gold lending to financial institutes at their doorstep in Delhi NCR.
The injected capital will be used to fuel activities and operations in Jaipur and Mumbai by March 2021. At the same time, the funds will be used to acquire the talent needed to strengthen the size of the team.
“During the pandemic, we saw several people facing a cash crunch and selling their assets to meet their financial needs. Our idea behind the launch of Ruptok last year was to offer easy financing options to customers from the comfort of their doorstep. We deeply salute and express our gratitude to Wurk who not only invested his capital in our idea, but also gives us his trust. This capital will help us fuel our business expansion plans to new cities. We are committed to providing accessible and hassle-free gold loans not only for financial institutions, but also for businesses large and small., ” said Ankur Gupta, Founder and CEO of Ruptok Fintech Pvt. Ltd.
Founded in July 2020, the company strives to provide instant loans against gold jewelry of 18k and above, within 30 minutes.
The company leverages the low cost operating model and credit scoring tools to offer competitively priced loans with a minimum interest rate of 0.85%. In less than a year, the company has already reached assets under management (AUM) of around INR 15 crore and is expected to increase it to INR 50 crore by the end of fiscal 21, the statement said.
“The Indian FinTech market has seen a tremendous growth trajectory in recent years, especially during the pandemic. The global crisis has brought about a fundamental shift in consumer behavior and their preference for most of the services on their doorstep. At present, the market attracts a pool of innovative ideas and distinctive solutions to meet the basic solutions of consumers by providing the greatest convenience. We believe Ruptok kicked off operations at the perfect time to address clients’ financial challenges with their near-to-door and instant services. We wish to join Ruptok on their journey to success,” added Barbara Holding, spokesperson, Wurk.
Customers can apply for, renew and repay interest or principal on loans using the company’s app from the comfort of their homes. Customers must complete the verification and security process by submitting KYC documents such as Aadhaar card, PAN card, passport and driver’s license among others.
The company plans to expand its business to up to 22 cities in India by FY23. For starters, Ruptok will first step up operations in two new markets, Jaipur and Mumbai, by March 2021.