BankBazaar Raises Rs 55 Crore In Funding, Enters Gold Loan Segment With Muthoot Fincorp

BankBazaar, a loan sourcing platform, has raised Rs 55 crore in fresh funding round from a group of investors, including gold loan company Muthoot Fincorp and existing backers such as Walden International.

The new investment valued BankBazaar at around Rs 1,700 crore (about $200 million). Muthoot Fincorp alone put in Rs 15 crore in this round for 1% stake of the company.

With this, BankBazaar’s total equity funding has reached $116 million.

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In April 2024, the Chennai-based company raised Rs 80 crore ($9.6 million) through a private placement as part of its ongoing Series D round.

Along with the investment, Muthoot Fincorp has partnered with BankBazaar in the gold loan business. This lets BankBazaar step into secured lending for the first time.

Offering gold loans marks a big move for BankBazaar, as entering secured lending has been a long-term goal for many fintechs facing challenges in growing consumer loans due to strict regulations.

“The round hasn’t closed yet; we’re keeping our options open... The credit card distribution business has helped us grow, but overall it has been a tough funding environment," said, Adhil Shetty, cofounder of BankBazaar.

“Customers will enquire about gold loans through BankBazaar and will eventually be serviced through our 3,700-branch network,” said Shaji Varghese, chief executive officer of Muthoot Fincorp. “As we expand operations, collaborating with BankBazaar will help us identify new demand centres and plan our expansion accordingly.”

Shetty said the company’s revenue has grown at an average rate of 46% per year, but didn’t share the exact numbers.

About BankBazaar 

Founded in 2008 by Adhil Shetty, ​BankBazaar is a Chennai-based fintech company that allows users to compare and apply for various financial products, including loans, credit cards, insurance policies and fixed deposits. 

The platform offers personalized rate quotes and aims to simplify the process of selecting financial products by providing comprehensive information and comparison tools.

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