BankBazaar To Diversify Business Into Gold Loans

New Delhi: Fintech firm BankBazaar.com specialising in co-branded credit cards and credit score services, has partnered with gold financier Muthoot FinCorp to enter the secured loans market with a gold loan product. As part of this NBFC-FinTech collaboration, Muthoot FinCorp has also invested Rs15 crore in BankBazaar's ongoing Series D2 round as an equity investor to further strengthen the digital platform.

As part of D2 round of the fundraise, BankBazaar.com has raised Rs55 crore putting the company's valuation at Rs1,700 crore. Of this, Rs15 crore investment has been made by Muthoot FinCorp which gets about 1 per cent stake in the fintech firm. Remaining Rs40 crore investment has been made by existing investors. "Gold loans, being counter-cyclical to unsecured credit, will diversify our portfolio and strengthen our offerings.

BankBazaar's consumers will gain seamless digital access to Muthoot FinCorp's high-quality, fully compliant gold loan products," Adhil Shetty, CEO, BankBazaar.com said. This will help leverage their extensive customer base of 67 million and cutting-edge analytics capabilities to drive superior customer experience, ensuring more inclusive credit access, including those who've been impacted by temporary financial setbacks, said Shaji Varghese, CEO of Muthoot FinCorp. This significant collaboration is poised to be a major milestone in our journey to deliver seamless credit solutions, empowering individuals to achieve their goals and aspirations, Varghese added.