Peak XV Partners and Accel-backed Rupeek may see a huge reduction in valuation in its upcoming round. According to sources informed of the talks, it has started conversations with both new and current investors. This may be the first major down round for a large gold loan firm.
According to the sources, the company’s latest valuation was around $600 million, and given the regulatory changes and the segment’s slow growth, investors may take a 40–50% hit on that amount. The funding’s specifics have not yet been decided upon. A firm that gets fresh capital at a lower value than in the last round is said to be in a “down round.”
The Reserve Bank of India’s recent move to prevent IIFL Finance from disbursing gold loans has caused participants in the complex and heavily regulated sector to become more wary. Furthermore, one of the individuals said that Rupee had seen stagnation in its managed assets during the current fiscal year.
Conclusion
The AUM of Rupeek as of December of last year was Rs 1,659 crore, compared with Rs 1,669 crore in March 2023, according to a February 22 credit rating note by Crisil. The quality of its assets has improved. According to the note, the percentage of loans that were past due by 90 days was 2.3% in December, down from 4.1% in the previous nine months.
