Fintech marketplace BankBazaar.com has entered the secured lending segment by teaming up with gold loan giant Muthoot FinCorp to launch a digital-first gold loan product. The strategic partnership marks a significant step in BankBazaar’s diversification strategy and comes alongside an investment by Muthoot FinCorp in BankBazaar’s ongoing Series D2 funding round.

The collaboration blends BankBazaar’s digital capabilities with Muthoot FinCorp’s gold lending expertise to offer a seamless “phygital” model—combining digital convenience with essential physical infrastructure. BankBazaar will manage the digital onboarding, customer interface, and marketing, while Muthoot FinCorp will oversee KYC verification, gold appraisal, loan disbursal, and safe custody of the gold.

The new product aims to offer same-day disbursal of gold loans with high loan-to-value (LTV) ratios, along with strong compliance and security standards.

“This launch reflects our mission to expand access to digitally available, regulated credit products,” said Adhil Shetty, CEO of BankBazaar. “It’s a strategic move that opens up secured lending for millions while strengthening our position in the digital lending ecosystem.”

Shaji Varghese, CEO of Muthoot FinCorp, emphasized the potential to use BankBazaar’s analytics and online reach to deliver more inclusive credit, especially in a market where 65% of gold loans are still sourced through informal, unregulated channels.

The initiative also aims to transition customers away from informal lenders by offering transparent and fair-value loans backed by Muthoot FinCorp’s trusted legacy.

BankBazaar, already a leading player in digital credit products, reported 62.5% YoY growth in co-branded credit cards in FY24, and anticipates becoming EBITDA profitable by FY25, supported by a projected 46% CAGR from FY22 to FY25.

With the Rs 55 crore raised in this round, BankBazaar’s total equity funding now stands at $116 million.