Indiagold, a young gold loan startup busy helping people deal with their gold, embraces a raise of $ 12 million in a Series A funding.

Indiagold is a gold-focused digital alternative credit company founded by Nitin Misra and Deepak Abbot, two former Paytm executives. The company uses gold to assess its customers' creditworthiness and offers APIs to banks and other lenders looking to connect into an underserved market.

The company now has two key products, one, it has made it incredibly easy and affordable for consumers to store their gold in a safe deposit box, and it has given them the option to borrow against their gold reserves.

The company utilizes gold to analyze the creditworthiness of its consumers and provides APIs to banks and other lenders eager to tap into a previously untapped market.

Consumers can now store their gold in a safe deposit box and borrow against their gold reserves, thanks to the company's creation of two crucial products.

After a user signs up for Indiagold, the company's agents visit their home, inspect and weigh the gold, and place it in a tamper-proof bag with an RFID sticker. The agent then places the bag in a steel box that the customer locks with their fingerprint as they depart the premises for the selected vault location, and the agent livestreams their journey.

The goal is to make depositing gold in a locker as simple as possible for consumers. Most individuals have traditionally avoided doing anything with their gold jewelry because of the emotional baggage linked to the yellow metal. A trust is formed when they interact with the agent who is locking the gold with their biometric in front of them and providing them a live feed of the travel to the safe locker.

Indiagold also charges a considerably lower fee for its locker, that is, only a few dollars each year, as opposed to the hundreds charged by banks. And, unlike banks, Indiagold insures its customers' gold.

Customers have access to the Indiagold app, which allows them to see the current worth of the gold objects in their locker. The startup's second offering kicks in at this point. If these consumers require a loan, the business may provide them with a line of credit in less than 30 seconds.

If altering consumer behavior wasn't difficult enough, Indiagold has also had to deal with a number of additional issues this year. According to Misra and Abbot, the devastating second wave of the coronavirus wiped out 70 percent of their business in a matter of days. Misra reflected, we've been through a lot in this short voyage.

However, by the first part of this month, business had reached an all-time high, he claimed.

Indiagold's innovative doorstep gold loan and gold locker solutions not only provide an unrivaled customer experience, but also allow the company to offer credit at lower rates. Indiagold's rapid growth is a testament to its exceptional product skills and the extensive experience of its illustrious founders. Falcon Edge Capital co-founder Navroz D. Udwadia says, “we believe the gold loan sector is ripe for change and are happy to back Indiagold's founders”.

By the end of the financial year, the business, which is now functioning in the National Capital Region and Indore, intends to expand to ten cities. The two founders also stated that they are expanding their product offerings. PayU announced that it will look into collaborating with Indiagold on several product offers.

A few startups are pondering about venturing into the country's gold potential. Jar, situated in Bangalore, is assisting youthful people in beginning their savings journey by investing in digital gold.