Oro Money, a prominent player in the gold loan industry, has successfully closed its latest financing round, raking in a substantial Rs 105 crore or roughly $12.5 million. This funding event marks the startup’s first financial foray this year, drawing interest from a mix of new entrants and established backers.
Recent filings with the Registrar of Companies (RoC) reveal that the company’s board greenlit the issuance of 7,916 preference shares, each valued at Rs 1,32,633. This strategic move brings their total raised capital this round to the aforementioned $12.5 million.
Leading the pack of new investors were Singularity Ventures and Three State Capital, who pumped in Rs 28 crore and Rs 16 crore, respectively. Meanwhile, Oro Money’s existing partners, PI Opportunities Fund and 021 Capital, reinforced their commitment with investments of Rs 24 crore and Rs 12 crore respectively. Noteworthy affiliations include PI Opportunities Fund’s linkage with Premji Invest and Three State Capital’s association with Flipkart co-founder, Binny Bansal.
The investment scene was further bolstered by individual stakeholders Mithun Sacheti, formerly at the helm of Caratlane, and Siddhartha Sacheti, the current CEO of Jaipur Gems. Both invested Rs 12.5 crore each.
Post this round, O21 Capital stakes its claim to 11% of the company. In contrast, Premji Invest, Singularity Growth, and Three State Capital hold 10.5%, 7.3%, and 4.2% equity shares respectively. Mithun and Siddhartha Sacheti’s positions now align with those of the company’s founding members. A detailed equity distribution is available on TheKredible.
To date, Oro Money’s fundraising endeavors have accumulated a commendable $17 million. With this recent round’s completion, the company’s valuation, according to TheKredible, is estimated at around $47 million.
Operating in major cities like Chennai, Bengaluru, Hyderabad, Pune, and Vijayawada, Oro Money offers gold loans at an attractive interest rate of 9.48%. They have also hinted at imminent expansions into Coimbatore and Delhi. In addition to their core service, they provide locker facilities, with subscription prices ranging from Rs 3,999 to Rs 9,999.
While the company’s financials for FY23 are yet to be disclosed, FY22 data indicates a pre-revenue phase with a loss of Rs 6.46 crore. Competing in a fiercely contested market, they lock horns with brands such as Indiagold, Ruptok, and Rupeek.
This influx of funds not only endorses Oro Money’s potential in the gold loan sector but also paves the way for its ambitious growth trajectory.
