According to multiple senior industry executives, players such as Indiagold and Oro, which have recently secured NBFC licences, are now looking to scale up their own lending businesses. Co-lending partnerships with larger NBFCs and banks are also being explored, they added.
This marks a significant shift for these startups, which previously operated as service providers or business correspondents to banks, using technology to streamline distribution rather than lend from their own balance sheets.
Building own loan book
“While Rupeek has had an in-house NBFC for a few years now, both Indiagold and Oro have raised between Rs 50 crore and Rs 100 crore in debt recently for onward lending,” said a senior executive at a digital lending startup.
Rupeek, the largest gold loan startup in India, is also looking to expand co-lending partnerships with banks as it strengthens its own book-building strategy, according to one of the executives cited above. ET had reported in February that the company is looking to raise $50 million in fresh funding, a significant portion of which could be used to capitalise its in-house NBFC.
Since 2019, Rupeek Capital, the startup’s NBFC arm, had steadily scaled down its own book to focus more on distribution. With the new RBI guidelines in place, however, it is now looking to scale up its balance sheet again.
According to a Crisil rating document from November 2025, of Rupeek’s total AUM of Rs 2,514 crore, Rs 447 crore was on its own book, Rs 133 crore came through co-lending arrangements, and the bulk, Rs 1,934 crore, was generated via its loan sourcing platform.
Sectoral slowdown
The shift comes at a time when the broader gold loan segment is seeing a slowdown, as banks adjust to the new regulatory framework.
Federal Bank, a key player in the segment, reported a 3% decline in gold loan disbursals in the March quarter compared with the December quarter.
“While gold loans faced challenges in the last quarter due to recent regulatory changes, the clarity now positions us to resume steady growth in the product, consistent with our performance over the past year,” said KVS Manian, chief executive officer of Federal Bank, during the March quarter analyst call.
Strategy reset
Startups such as Oro, Indiagold and Rupeek were built to reimagine gold loan access, offering app-based approvals, deep integrations with banks for instant disbursals, and doorstep pickup and delivery of gold.
However, recent rules have disrupted that model, with the RBI mandating that gold handling be carried out only by employees of regulated entities such as banks and NBFCs.
“That one line meant none of our employees could handle gold. In most cases now, we are acting as agents, taking customers to bank branches. The core disruption of doorstep service is gone,” said a founder of a gold loan startup, requesting anonymity.
Banks such as Federal Bank, Shivalik Small Finance Bank and South Indian Bank have partnered with fintechs in this segment, while larger lenders including HDFC Bank and ICICI Bank also maintain such collaborations.
“The original idea was to focus on sourcing and servicing customers at low cost and scale, operating on thin margins. Now, the focus is shifting toward building loan books,” said another industry executive.
Competing with incumbents
For early-stage startups, this pivot means going up against entrenched NBFCs such as Muthoot Finance, Muthoot Fincorp and Manappuram Finance.
Given their scale, these incumbents are able to raise funds at significantly lower costs, an advantage that fintech startups currently lack, industry insiders said.
In a note published in September last year, EY said: “For NBFCs, compliance costs and operational overheads may rise initially. However, the measures are expected to enhance asset quality, mitigate default risks and strengthen market credibility.”
Fintechs are betting that with greater regulatory clarity, a balanced model combining partnerships with owned lending will emerge, helping them regain momentum.
