In a striking development for the burgeoning Indian fintech sector, Oro Money, a Chennai-based gold loan platform, has secured a substantial infusion of capital, totalling Rs 105 crore or approximately USD 12.5 million. This impressive financial feat marks Oro Money’s maiden financing round of the year and underscores the dynamic growth potential within the Indian financial technology landscape. The emergence of this startup as a prominent player in the gold loan sector is a testament to India’s ever-expanding appetite for innovative financial solutions.
The company’s board of directors unanimously passed a special resolution, facilitating the issuance of 7,916 preference shares at a notable issue price of Rs 1,32,633 each. This strategic move resulted in Oro Money raising an impressive sum, further bolstering its position in the competitive financial technology market.
Singularity Ventures and Three State Capital, new investors in this round, have injected Rs 28 crore and Rs 16 crore into Oro Money, solidifying their confidence in the startup’s future prospects.
Furthermore, existing investors have reiterated their faith in the venture, with PI Opportunities Fund and O21 Capital contributing Rs 24 crore and Rs 12 crore, respectively. PI Opportunities Fund is an affiliate of Premji Invest, a prominent name in India’s financial sector. At the same time, Three State Capital is the venture capital fund founded by Binny Bansal, one of the co-founders of e-commerce behemoth Flipkart.
A notable dimension of this fundraising is the participation of individual investors who are luminaries in their respective domains. Mithun Sacheti, co-founder and former CEO of Caratlane, and Siddhartha Sacheti, the creative director and CEO of Jaipur Gems, have both pledged an impressive Rs 12.5 crore each to fortify Oro Money’s growth trajectory.
Post the successful allotment of funds, the shareholding structure of Oro Money is reconfigured, with O21 Capital holding an 11% stake. On the other hand, Premji Invest, Singularity Growth, and Three State Capital now possess stakes of 10.5%, 7.3%, and 4.2%, respectively, in the promising Chennai-based firm. Notably, the investments from Mithun and Siddhartha Sacheti have solidified their positions as significant stakeholders in Oro Money, akin to its founders.
Oro Money’s unique value proposition lies in its provision of gold loans at an attractive interest rate of 9.48%, making it an appealing choice for those seeking financial assistance secured against their precious assets. The startup operates in key Indian cities, including Chennai, Bengaluru, Hyderabad, Pune, and Vijayawada. It is poised to expand its footprint further by entering the markets of Coimbatore and Delhi shortly. This strategic expansion indicates Oro Money’s ambition and determination to provide financial services to a broader demographic.
In addition to gold loans, Oro Money offers secure locker facilities to its customers, with subscription prices ranging from Rs 3,999 to Rs 9,999, reinforcing its commitment to addressing diverse financial needs. The startup’s multifaceted approach to financial services positions it as a one-stop solution for individuals seeking short-term loans and secure storage for their valuables.
It is important to note that Oro Money has yet to file its financial statements for the fiscal year 2023. However, it remained in the pre-revenue stage during the preceding fiscal year, FY22, with reported losses of Rs 6.46 crore. As a relatively young player in the market, this performance is not uncommon, and it aligns with the startup’s overarching strategy to build a solid foundation before accelerating its growth trajectory.
Oro Money is in a highly competitive landscape, with rivals like Indiagold, Ruptok, and Rupeek vying for a share of India’s burgeoning gold loan market. Despite the formidable competition, Oro Money’s successful fundraising endeavour and strategic expansion plans demonstrate its resolve and potential to emerge as a prominent player in the gold loan industry.
Oro Money’s recent financing round is a significant milestone in the journey of this Chennai-based gold loan platform. With an impressive infusion of Rs 105 crore, a diverse group of investors, and a valuation of $47 million, Oro Money plans to further its expansion and impact the Indian fintech sector. Its innovative approach to gold loans and additional financial services positions it as a promising player in a rapidly evolving industry, with the potential to address the diverse financial needs of individuals across the nation. As it charts a course toward further growth, Oro Money’s journey is one to watch, with its journey and success offering insights into the evolving landscape of financial technology in India.
