The fintech platform plans to use the fund to start operations in Jaipur and Mumbai by March 2021; plans to expand the business to up to 22 cities by FY23.
January 25, 2021: Ruptok Fintech Private Limited, a fintech platform for gold lending, raised INR 10 crore in an angel funding round from Wurk, a Canadian investment firm. Ruptok has endeavored to offer logistics and technology solutions for gold loans to financial institutes at their doorstep in Delhi NCR. The injected capital will be used to fuel the business and operations in Jaipur and Mumbai by March 2021. At the same time, the funds will be used to acquire the talent needed to strengthen the size of the team.
Founded in July 2020 by Ankur Gupta, Founder and CEO, a Serial Entrepreneur and Akshita Gupta, Co-Founder and Head of Human Resources and Yashwardhan Aeren, Co-Founder and Head of Product Development, Ruptok strives to provide loans instant against gold jewelry (18k and above) within 30 minutes. Ruptok is supported by ABL Workspaces Private Limited, a premium co-working space.
The company takes advantage of the low cost operating model and credit scoring tools to offer competitively priced loans with a minimum jumping interest rate of 0.85%. In less than a year, the company has already reached an Assets Under Management (AUM) of around ₹ 15 crore and is expected to increase it to ₹ 50 crore by the end of this FY21.
On the capital injection, Ankur Gupta, Founder and CEO, Ruptok Fintech Pvt. Ltd. said: “During the pandemic, we saw several people facing a cash shortage and selling their assets to meet their financial needs. Our idea behind the launch of Ruptok last year was to offer easy financing options to customers from the comfort of their doorstep. We deeply welcome and express our gratitude to Wurk who not only invested his capital in our idea, but also places his trust in us. This capital will help us fuel our business expansion plans to new cities. We are committed to providing accessible and hassle-free gold loans not only for financial institutions, but also for businesses large and small. “
Speaking on the investment, Barbara Holding, a spokesperson for Wurk, said: “The Indian fintech market has seen a huge growth trajectory in recent years, especially during the pandemic. The global crisis has brought about a fundamental shift in consumer behavior and their preference for most of the services at their doorstep. At present, the market is attracting a pool of innovative ideas and distinctive solutions to meet basic consumer solutions in offering the utmost convenience. We believe Ruptok has launched operations at the perfect time to meet clients’ financial challenges with their near and instant services. We would like to join Ruptok on their journey to success ”
The company plans to expand its operations to up to 22 cities in India by FY23. To begin with, Ruptok will first step up its operations in two new markets Jaipur and Mumbai by March 2021.