Ruptok, which is active in the national capital region, will expand into the financial capital after the acquisition and also gets Golduno''s technology platform which would have taken a year to build, its founder and chief executive Ankur Gupta said.
Gupta said the five-year-old Golduno had raised money last year at an enterprise valuation of USD 5 million, and its shareholders will now be getting a 13 per cent share in Ruptok after the merger and Golduno leadership will be joining the team at Ruptok.
He said Jaipur and Mumbai were the key markets that were on Ruptok''s radar for the last few months and added that it will be entering the distribution space in Rajasthan''s capital next week.
Ruptok distributes gold loans for banks and other financiers at present, and works for three lenders, he said, explaining that it typically gets a share of the interest paid by the borrower to the lender for its services.
The services rendered include picking up the gold from a borrower''s doorstep, securely transporting it to the lender''s custody and transporting it back once the loan is extinguished, he said.
The company, which had 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 manufacture loans, he said.
It is also looking at a newer round of fundraising in the next quarter from both existing and newer investors to raise USD 8-10 million, which will help it achieve its target to be present in 27 cities by end of the year.
Gupta said typically, the company requires a small team to enter a city and the process is driven by a centralised processing centre in New Delhi.
The average loan size is Rs 4 lakh at present which is expected to halve over the next few months as the reach expands to smaller centres, he said.
In the last six months, Ruptok and Golduno have collectively helped disburse Rs 32 crore of loans, and only one account has turned bad, he said. PTI AA SHW SHW
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI