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Gold loan provider Yellow Metal raises $3M in funding led by <strong>MSA Novo</strong>

ISN Webteam
15 Mar 2023
Gold loan provider Yellow Metal raises $3M in funding led by <strong>MSA Novo</strong>

Bengaluru-based gold loan provider Yellow Metal has raised $3 million in a seed funding round led by MSA Novo, a multi-stage venture capital firm, with participation from Spiral Ventures, a Japanese VC firm and existing investors WaterBridge Ventures and Java Capital. 

The fresh funds will help expand technology team operations across 25 new markets in and outside of Karnataka and also add new forms of asset-backed lending that are required for consumers in Rural India, the startup said.

In Addition to this, The startup will invest in strengthening its proprietary loan management system built for mobile phones.

Founded in 2020 by Rahul Boggaram and Nikhil Boggaram, Yellow Metal claims that it offers simple, accessible, and cost-effective gold loan services in just 30 minutes at the customer's doorstep, with no processing fees and transparent pricing. 

The startup also said that it ensures complete transparency in pricing, payments and collections and enables digital loan disbursements.

"Yellow Metal enables these households to access cheaper credit at scale by combining existing offline network of agent with technology . We are very impressed by the scale achieved by Yellow Metal in just 1 year of operations with a limited capital outlay. The need of credit will increase as India grows and we are very confident that Yellow Metal will be able to provide a full range of asset backed credit products in the near future.”, said Prakhar Khanduja of MSA Novo.

Rahul Boggaram and Nikhil Boggaram, Co-Founders of Yellow Metal, said, “Building trust in the rural markets will help us become a destination for all forms of asset-backed lending. This seed fund will help us to invest more in technology that will, in turn, help build a better customer experience and a transparent product.

"If the company has a strong financial position, we will also be able to negotiate favourable terms from the partnerships. We are excited about the opportunities ahead and grateful for the support of our investors and partners," the duo added.

“We are proud first partners of YellowMetal and excited to continue to partner with Nikhil and Rahul as they set out to become rural India’s most trusted financial services brand. Their customer-first thinking and deep operational expertise have helped them scale to >$1m in monthly disbursements across 7 Southern Indian towns with only $580k of seed capital. With this new $3m funding round, we are confident that they will continue to execute well and scale to 25+ towns”, said Anjali Sosale of Waterbridge Ventures.

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