BankBazaar.com, a fintech platform focused on co-branded credit cards and credit score services, has entered the secured lending space with a digital-first gold loan product. The company on Wednesday made a strategic partnership with Muthoot FinCorp, a gold loan-focused NBFC under the Muthoot Pappachan Group.
As part of the tie-up, Muthoot FinCorp has also invested in BankBazaar’s ongoing Series D2 round. The fintech has raised Rs 55 crore ($6.44 million) in fresh funding from a group of investors, including Muthoot FinCorp and existing backer Walden International. The investment values the company at around Rs 1,700 crore (approximately $200 million), with Muthoot FinCorp contributing Rs 15 crore for a 1% stake.
Adhil Shetty, CEO of BankBazaar.com, said the entry into gold loans will diversify the platform’s portfolio. “Secured products act as a countercyclical to unsecured lending. In that sense, gold loans strategically align with the kind of portfolio we want to build,” Shetty told FE. He added that while unsecured lending saw its slowest growth in five years during FY25, secured products witnessed their fastest expansion.
India’s organised gold loan market is pegged at `6.5 lakh crore, while the unorganised sector is estimated to be twice that size at Rs 13–14 lakh crore.
Gold loans have emerged as the fastest-growing segment within personal loans, with outstanding credit rising 87% year-on-year to Rs 1.91 lakh crore as of February 2025—far outpacing the 11% growth in credit card dues. The surge is driven by tighter credit in the unsecured segment, rising stress among microfinance borrowers and higher gold prices.
Several players including Poonawalla Fincorp, Belstar Microfinance (a Muthoot Finance subsidiary), and L&T Finance have recently entered the gold loan business through organic expansion or acquisitions.
Under the partnership, BankBazaar will handle digital data management, marketing, product education, customer experience, and credit score improvement through financial literacy, while Muthoot FinCorp will manage KYC, verification, valuation, storage, disbursal, and compliance—ensuring same-day loan disbursal through phygital (physical+digital) model.
BankBazaar reported a 62.5% increase in co-branded credit card issuance in FY24 and expects 46% annual revenue growth between FY22 and FY25. The company is on track to achieve full-year Ebitda profitability in FY25, currently under audit. With the latest round, its total equity funding stands at $116 million.