Chennai-based fintech startup Oro Money has raised nearly $12.5 Mn from new and existing investors.
Oro Money’s board has approved a special resolution to issue 7,916 preference shares at a price of approximately $12.5 Mn, or INR 105 Cr, each with an issue price of INR 1,32,633.
In the funding round, new investors Singularity Ventures and Three State Capital invested INR 28 Cr and INR 16 Cr, respectively. Existing investors PI Opportunities Fund and 021 Capital invested INR 24 Cr and INR 12 Cr, respectively.
Additionally, two existing individual investors, Mithun Sacheti, cofounder and ex-CEO of Caratlane, and Siddhartha Sacheti, creative director and CEO of Jaipur Gems, each participated with INR 12.5 Cr.
The development was first reported by Entrackr.
After the recent funding, O21 Capital now holds an 11% stake in the Chennai-based startup, while Premji Invest, Singularity Growth, and Three State Capital own 10.5%, 7.3%, and 4.2% stakes, respectively.
Founded by Parth Shah, Sreekesh Krishnan, Rakesh Mani, in 2021, Oro allows users to tap into the value of their gold easily. It connects users with financial institutions to provide them with better access and accurate information about their gold’s worth.
Currently, it is operational in Chennai, Bengaluru, Hyderabad, Pune, and Vijayawada, as per the company website.
India’s gold loan market is thriving due to cultural ties to gold and the demand for accessible credit. The rise of gold-focused non-banking financial companies (NBFCs) offering easy access, swift disbursement, and competitive interest rates has further boosted the market’s popularity. In this segment, Oro Money competes with the likes of Ruptok, Rupeek, Indiagold, among others.
Last year, Indiagold raised $22 Mn in an extended Series A funding round from its existing investors – Alpha Wave, 3one4 Capital, PayU, and Leo Capital.
In the fiscal year 2023, the assets under management (AUM) for gold loan non-banking financial companies (NBFCs) was projected to increase to INR 2,197,00 Cr, up from INR 1,568,00 Cr in 2022, as per a Staista report.
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