Muthoot FinCorp Funds BankBazaar, Charts Its Foray into Gold Loans

Chennai-based fintech BankBazaar has secured an undisclosed amount from Muthoot FinCorp as part of its ongoing Series D2 round. With this, the round’s total size has grown to INR 55 Cr (around $6 Mn), the startup said.

Besides, BankBazaar has inked a partnership with Muthoot FinCorp (an NBFC) to enter the gold loans business. Under this partnership, BankBazaar will handle digital data management, digital marketing, product education, digital customer experience and credit score improvement processes.

Muthoot will be responsible for KYC-related compliances, verification, valuation, storage and all other guidelines to ensure same-day loan disbursal.

Founded in 2008 by Adhil Shetty, Arjun Shetty, and Rati Shetty, BankBazaar provides cobranded credit cards and free credit score services to its customers. It also offers various types of loans.

Since its inception, the startup has raised $116 Mn. It is backed by the likes of Peak XV, Eight Road Ventures and Amazon among others. It claims to have served over 67 Mn users via its platform.

The Peak XV-backed startup last raised INR 45 Cr (around $5 Mn) in its Series D1 round, which saw participation from Walden SKT Venture Fund, Amazon, Peak XV, Experian and Eight Roads.

In the financial year 2022-23 (FY23), its last disclosed financials, the startup trimmed its net loss by 15% to INR 36.71 Cr from INR 43.23 Cr in the previous fiscal year. The net losses declined on the back of a 66% jump in its operating revenue to INR 158 Cr for the period under review from INR 95 Cr in FY22.

With its foray into gold loans, BankBazaar would now be locking horns with the likes of Jar, Gullak and Rupeek in the Indian lending tech space, expected to become a 1.3 Tn opportunity by 2030.

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