Indiagold, a gold-centric lending startup, has scooped up $12 million in its Series A round led by Prosus-owned PayU and Alpha Wave Incubation. Better Tomorrow Ventures, 3one4 Capital, Rainmatter Capital and Leo Capital additionally participated in the round.

The organization, which operates in NCR, will expand its offerings to around 10 cities before the end of the monetary year.

While the organization didn’t disclose its valuation in the current round, sources aware of the matter pegged it around $45-50 million.

Unique model among peers

Where gold credits has been championed by conventional physical players including Muthoot Finance and Manappuram Finance, new-age new businesses, for example, Rupeek have been creating ripples in the gold advance market. The entry of Indiagold has made the competition more intense as the multi month-old startup offers advances against computerized gold too.

In a nutshell, the organization provides advances against physical just as computerized gold through its locker service. Moreover, consumers have a choice of insurance cover for their lockers.

The Paytm Connection

Founded by two former Paytm executives Deepak Abbot and Nitin Mishra, Indiagold provides locker services where customers can store and earn 5-6% interest every year on the value of their gold deposit. Moreover, consumers can likewise take up to Rs 60,000 credit against computerized gold kept in its locker.

Up until this point, Paytm, Google Pay, PhonePe are some of the other leading players in the advanced gold-selling space in India. As indicated by Entrackr’s sources, these companies might partner with Indiagold for enabling advances against computerized gold.

More assets for Indiagold

This is the second financing round for the Gurugram-based startup in 2021 which raised its $2 million seed round in February from Leo Capital, Blume Founders Fund, Sequoia Scout and angels including Kunal Shah, Amrish Rau, Kunal Bahl, Ashneer Grover, Miten Sampat, Ramakant Sharma and Sandeep Tandon.

As per Entrackr’s sources, lead investors of the current round i.e. PayU and AWI are likely to invest $10 million more at around $75 million valuation.