Mumbai, March 31 (PTI) Gold lending company Ruptok Capital announced on Wednesday the acquisition of the city-based Golduno as part of an equity deal to expand its reach.
Ruptok, which is active in the National Capital Region, will expand into the financial capital after the acquisition and also get the Golduno technology platform that would have taken a year to build, its founder and CEO Ankur Gupta said. .
Gupta said that five-year-old Golduno raised funds last year at a company valuation of $ 5 million, and that its shareholders will now get 13% of Ruptok’s shares after the merger and the management of Golduno will join the Ruptok team. .
He said Jaipur and Mumbai were the key markets that have been on Ruptok’s radar in recent months and added that he will enter the distribution space in the capital of Rajasthan next week.
Ruptok currently distributes gold loans to banks and other financiers and works for three lenders, he said, explaining that he usually receives a share of the interest paid by the borrower to the lender for his services.
Services rendered include picking up the gold from a borrower’s door, transporting it safely to the custody of the lender, and repatriating it after the loan is extinguished, he said.
The company, which raised Rs 10 crore from Canadian investors Wurk last year, is in the process of acquiring a non-bank finance company that will help it fabricate loans, he said.
It also plans to raise funds again in the next quarter from existing and new investors to raise $ 8-10 million, which will help it meet its goal of having a presence in 27 cities by the end. of the year.
Gupta said that generally the business needs a small team to enter a city and the process is driven by a centralized processing center in New Delhi.
The average loan amount is currently Rs 4 lakh, which is expected to halve over the next few months as the reach expands to smaller centers, he said.
Over the past six months, Ruptok and Golduno have collectively helped disburse Rs 32million in loans, and only one account has gone bad, he said. PTI AA SHW
Disclaimer: – This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI