The gold-focused lending company Indiagold will raise $10 million via an expanded Series A round with existing investors, according to three sources familiar with the specifics of the transaction. The new funds will increase the total amount raised to $22 million.
“Alphawave is spearheading the new tranche while other existing investors including 3one4 Capital, PayU and Leo Capital will also join,” said one of the sources who requested anonymity since talks aren’t still to be made publicly announced.
It is important to note that the new tranche is at a two-fold premium to its previous valuation, according to sources.
Questions addressed for response to Indiagold, PayU and Alpha Wave haven’t received a prompt response. We’ll incorporate their responses in the event that they reply.
The increase of 2X in the valuation of Indiagold after an additional round of funding is an encouraging improvement in the market for funding, which has seen drastic a dip over the last few months. According to the Fintrackr’s report the total funding of Indian startups was $12.7 billion in Q1 2022, which dropped by $7.86 billion in the second quarter. The amount further dropped to less than one billion in July before it barely touched one billion during August. In all, startups have picked up $22 billion in the initial eight months in 2021, contrasted to $38 billion that they had in the previous year.
The company was created in the late 1990s by ex- Paytm executive Deepak Abbot, and Nitin Mishra. Indiagold works with banks as well as non-banking financial corporations (NBFCs) to provide gold loans . The company is available throughout 12 different cities.
The latest tranche of the Gurugram-based company comes after a period of. In September of 2021, Indiagold had raised an amount of $12 million in a round, led by Prosus’s PayU along with Alpha Wave. In February, the same year, the company raised the sum of Rs 14 crore in its seed round, which was led by Leo Capital and a clutch of angel investors that included Kunal Shah Amrish Rau Kunal Bahl, and Ashneer Grover.
Indiagold is a major competitor to Accel-backed Rupeek that is struggling difficult to close another round. To lower costs amid difficult financing conditions, Rupeek has also eliminatedover 200 people in two separate batches over the past couple of months.