Indiagold eyes national expansion to disrupt gold loan market

Mon Feb 22 2021

 

Indiagold, a gold-based lending startup founded by two former senior Paytm executives, is aiming to roll out operations nationally this year going beyond its home market of New Delhi.

 

Deepak Abbot and Nitin Misra, who were among the senior executives in Paytm, have co-founded Indiagold and are planning to expand operations across the country in the next two years. While it plans to expand in the north and west India this year, it will also go to south India, which is considered the biggest gold loan market, in 2022. Gold loans so far have been typically run by traditional outfits and Indiagold is among the new breed of technology-based startups looking to disrupt the market.

 

According to Abbot, Indiagold essentially gives the option to store gold in lockers at a much cheaper rate than traditional banks. ‘And we offer a credit line based on the gold you are storing with us. This is an instant credit that gets credited to you, in case you need it. This year, we are looking to enter cities like Surat, Ahmedabad, Jaipur and then in 2022 we would go to Hyderabad, Chennai and Bengaluru,” he said. Indiagold also sells digital gold on its platform. Leading payments companies like Paytm, PhonePe and Google Pay also sell digital gold to their users.

 

Currently, Indiagold sells digital gold worth Rs 1 crore a month while it is disbursing gold loans worth Rs 4 crore a month. Indiagold is partnering with banking and financial services partners to enable credit to users based on the gold they are storing with Indiagold. “We give fully secured and insured gold storage through our partners which also enables you to track your gold remotely anytime you want. It provides convenience to customers as loans are available even after banking hours on weekends," Abbot added.

 

Source: https://timesofindia.indiatimes.com/