Wealthtech Startups Gullak and Stable Money Attract VC
Why in the news
With markets turbulent, small investors favoured safer assets, and venture capital backed startups selling fixed deposits and digital gold despite unclear rules.
Key facts
- Gullak (digital gold) in advanced talks for $5-6 million, likely led by Chiratae Ventures.
- Stable Money closing $20-25 million led by Fundamentum; earlier $15 million in July 2024; valuation near $130 million.
- Household assets: $10.7 trillion, over 15% in gold.
Concerns
- SEBI has barred registered platforms from selling digital gold, fuelling crackdown fears.
- Custody chains and audit trails of gold backing unresolved.
- Only about 100,000 unique investors use these platforms.
- Low-margin FDs may not stay viable as bigger fintechs enter; Blume Ventures asked “What is the moat?”
Outlook
- Success depends on regulatory clarity, innovation and customer trust.
Exam angle
- Terms: wealthtech, digital gold, fixed deposits.
- Regulator: SEBI.