An Indian fintech startup has made strides in the financial landscape by turning profitable and aiding millions of first-time savers in building digital gold holdings through its innovative app. The startup, known for focusing on gold investments, has attracted a diverse user base by providing a culturally resonant saving option, differing from many other consumer fintechs that typically target affluent urban populations.
With an emphasis on inclusiveness, the startup caters to low- and middle-income users who are often overlooked by traditional financial institutions. Users can initiate their gold investment journey with as little as ₹10 (about $0.11) per day, making it an accessible entry point for savings.
In just four years, the startup has registered over 35 million users across 12,000 zip codes in India. Approximately 60% of its clientele hails from tier-2 and tier-3 cities, and more than 95% of its users are engaging in formal savings for the first time. This strategy of targeting underserved demographics has proven effective, leading to significant financial growth and plans for an initial public offering (IPO) next year.
Recent financial disclosures indicate that the startup’s operating revenue surged ninefold in fiscal year 2024, ending in March, reaching ₹2.08 billion (around $23.6 million). Furthermore, total revenue across various business lines exploded to ₹24.50 billion (approximately $279.3 million), marking a staggering 49-fold increase from ₹500 million ($5.7 million) the previous financial year.
This total revenue encompasses earnings from digital gold transactions, jewelry sales through its newly launched platform, and fees from external partners. The jewelry segment, in particular, plays a significant role in this diversified business model. Launched early last year, the platform offers a variety of jewelry, including gold and diamond pieces, across an extensive network of zip codes while utilizing a drop-shipment model that maintains zero inventory. This segment alone crossed ₹1 billion (about $11 million) in annual revenue last year and has continued to grow steadily.
The startup has achieved profitability after tax for two consecutive quarters, highlighting its sustainable growth trajectory. The company’s recent success can be attributed to a strategic pivot; previously functioning as a distribution platform reliant on a third-party gold provider, the startup has now invested in a comprehensive in-house tech stack to manage its gold operations. This move allows for greater control over the entire value chain, enabling the startup to partner with third-party distributors, including PhonePe, a fintech subsidiary of Walmart.
Earlier this year, the startup introduced features that allow users to make digital payments via the Unified Payments Interface (UPI) directly through its app, thereby opening a new revenue stream while enhancing user engagement. By embracing UPI AutoPay, a feature facilitating recurring payments, the startup has driven repeat transactions among users who predominantly use the app for daily savings.
The app’s user base is diverse, encompassing skilled professionals, small business owners, and daily wage workers. Supporting nine Indian languages, the platform is designed to accommodate a wide range of users from varying educational backgrounds and income levels.
To enhance user retention, the app employs gamification and personalized experiences tailored to individual saving habits. The startup’s growth team leverages various data signals to refine user engagement strategies based on factors such as device usage, location, and saving patterns.
Backed by prominent investors, the company has raised $63.3 million to date and was valued at over $300 million in its last funding round. The continued momentum of this fintech startup reflects its commitment to democratizing access to savings and investment opportunities, fundamentally altering the financial landscape for millions of Indians.
