Yellow Metal Secures Funding to Enhance Gold Credit Services
- ByStartupStory | March 15, 2023
Yellow Metal, a financial technology company, has successfully raised $3 million in seed funding, which was led by MSA Novo, a prominent VC firm. Other investors, including Spiral Ventures, WaterBridge Ventures, and Java Capital, also participated in the funding round.
The primary goal of Yellow Metal is to use the newly acquired funds to expand its technology team operations in Karnataka and introduce innovative asset-backed lending services. Additionally, the company aims to enhance its loan management system to provide a better customer experience.
Yellow Metal, a startup specializing in gold lending technology, has reportedly raised over $3 million (INR 24.6 crore) in its seed funding round, with MSA Capital leading the investment. Other participants in the funding round included WaterBridge Ventures, Spiral Ventures, LetsVenture’s LV Angel Fund, and Java Capital’s Csquare Venture Partners Fund.
According to regulatory filings, Yellow Metal issued one equity share and 3,662 Seed I compulsory convertible preference shares (CCPS) at a price of INR 67,773 each to raise $3.02 million.
Gold lending technology startup, Yellow Metal, has secured a total of INR 24.6 crore in seed funding, with MSA Capital investing INR 9.92 crore and WaterBridge Ventures, Spiral Ventures, LetsVenture, and Java Capital contributing INR 7.20 crore, INR 6.20 crore, INR 80 lakh, and INR 70 lakh respectively.
The company, founded by Rahul Boggaram and Nikhil Boggaram in 2020, provides gold credit to rural populations within 30 minutes and offers an annual interest rate of 9.48% on gold loans. In November, Yellow Metal launched an ESOP pool worth INR 10 crore and issued 1,465 stock options to its employees. The company has now raised a total of $3.53 million in funding.
In FY22, the company suffered a loss of INR 62.8 Lakh, despite earning INR 6.34 Lakh in total income and generating operating revenue of INR 1.6 Lakh. The Indian market presents competition from Indiagold, Rupeek, Bold Finance, Jar, and other competitors.
Indiagold, the gold lending startup, secured $22 Mn in Series A funding round from Alpha Wave, 3one4 Capital, PayU, and Leo Capital in November. Meanwhile, fintech startup Bold Finance also raised $1.5 Mn in a seed funding round led by Kae Capital, with participation from existing investors such as Antler India, Nitin Gupta from Uni Cards, Ishpreet Gandhi from Stride Venture, Shashikant Dola from McKinsey, Tushar Mehndiratta from Avail Finance, Vadiraj Kulkarni from ITC PSPD, among others.
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