Gold loan provider Rupeek to raise $16 million from Accel and Sequoia Capital

• ByStartupStory     |    September 8, 2022

Rupeek, a gold loan provider, is getting up to $16 million in a new round of fundraising from Accel India and Sequoia Capital, among others, according to some reliable sources. Bertelsmann and the ZNL Growth Fund will also participate in the investment round.

According to regulatory documents, the business is close to getting $7.4 million from Accel India, Sequoia Capital, and Bertelsmann, among others.

According to the documents, the startup’s shareholders accepted the issuance of E2 CCPS to Sequoia Capital, Accel India, Bertelsmann, and ZNL Growth Fund, among others, at an issue price of INR 9,91,072 per share during an extraordinary general meeting held on August 30, 2022.

The announcement comes nearly three months after Rupeek lay off roughly 200 staff as part of a cost-cutting measure. A corporate representative said the layoffs were caused by a “subdued macroeconomic environment.”

The statement went, “Taking cognizance of the subdued macroeconomic situation, we accelerated our efforts over the past few months to achieve profitability. As further clarity emerged, we have firmed up our strategy to turn profitable in the next 12-18 months and adapt to the quickly evolving market conditions.” 

Rupeek itself added, “A transition towards a leaner cost structure combined with the recent closure of fundraises as per plan will ensure we are well capitalized in the above journey. This strategic step mandates us to restructure our workforce to unlock better synergies, and as a result of that, with deep regret and much deliberation, we had to  part ways with ~5% of our total workforce.”

Follow Startup Story