What was previously limited to buying physical gold in the form of coins, bars, or jewelry has now changed to digital gold. Fintech startups are making investing in gold easier and more flexible. These platforms provide gold exchange-traded funds (ETFs) and fractional ownership, making gold investments accessible for as little as INR 1. This shift has increased liquidity and accessibility, allowing investors to invest in gold without the concerns of storage, insurance, or purity.
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The Rise of Digital Gold Platforms
Several investment tech startups and fintech companies are capitalizing on the digital gold trend. Digital payment platforms like PhonePe, Paytm, and Google Pay have created gold marketplaces, connecting buyers to various platforms. Apps like Jar and Gullak offer unique gold investment options.
Key Benefits of Digital Gold
- Accessibility: Invest with as little as INR 1.
- Liquidity: Easy to buy and sell gold.
- Convenience: No need to worry about storage or purity.
Fintech startups are revolutionizing gold investments in India, making it easier than ever to participate in the digital gold rush with convenience, transparency, and accessibility for all
12 New-Age Investment Platforms
Here are some of the startups disrupting the digital gold segment in India:
| Platform | Key Features |
| Airtel DigiGold | Gold investments through the Airtel Thanks App in partnership with SafeGold. |
| Groww | Mutual fund and stock broking app that also offers gold investments. |
| Gullak | Automates savings to invest in gold; allows users to lease their gold for an extra 5% return each year. |
| Jar | Allows users to invest as little as INR 1; recently launched a D2C jewellery brand called Nek. |
| Jupiter Money | Neobanking platform that allows savings account customers to invest in digital gold. |
| Plus Gold | Aims to improve tech infrastructure and introduce AI-driven investment advisory services. |
| Pluto Money | Offers automated goal-based saving solutions, with gold as part of an array of investment options. |
| Ruptok | Provides loans against gold jewelry, including digital gold as collateral. |
| Spare8 | Allows users to invest in gold by rounding up spare change from everyday purchases. |
| Yellow Metal | Offers gold loans to rural people and allows users to invest in digital gold with as little as INR 1. |
| Paytm Money | Offers stocks, IPOs, futures and options, mutual funds, ETFs, FDs, and NPS. |
| Kuvera | Offers mutual funds, FDs, stocks, US stocks, EPF, and gold in one platform. |
Spotlight on Key Platforms
- Gullak: Founded in 2022, Gullak helps users automate savings to invest in gold. It aims to promote financial literacy and responsible saving habits. Users can also lease their gold to get an extra 5% return each year.
- Jar: Founded in January 2021, Jar allows users to invest as little as INR 1. It has over 1.5 Cr users and allows users to automate savings and make daily investments in digital gold.
- Groww: While known for mutual funds and stock broking, Groww also offers gold investments. It has a large base of active stock investors.
Investment Options Beyond Gold
While digital gold is gaining traction, other new-age investment options are also available:
- Cryptocurrencies
- ESG Mutual Funds
- InvITs
- Real Estate Investment Trusts (REITs)
- International Stocks
New Age Stocks in India
Several new-age companies are capturing attention in the stock market:
- Zomato: A major player in food delivery.
- OLA Electric Mobility: A prominent company in India’s EV market.
- FirstCry: A baby and kids’ product retailer.
- Nykaa: A popular beauty and wellness platform.
- Paytm: Known for digital payment services.
Fintech’s Midas Touch: Powering India’s Digital Gold
Fintech startups are playing a significant role in India’s digital gold rush by changing how Indians invest in and use gold. These startups offer innovative ways to invest in gold through micro-purchases and systematic investment plans (SIPs) for regular savings.
Here’s how fintech firms are capitalizing on the digital gold rush:
- Accessibility and convenience Fintech startups make it easier for people to invest in digital gold and offer loans against gold in a hassle-free, paperless manner. Major fintech platforms offer special deals to drive interest in digital gold investments, allowing users to invest with as little as INR 1.
- Transparency and Trust Indian fintech startups offer transparent pricing and interest structures, unlike traditional pawnbrokers and moneylenders who charge exorbitant interest rates. Strict regulation by the RBI, including KYC norms, provides users with the comfort of knowing they can bank on these new-age platforms.
- Diversified offerings Fintech startups offer a slew of diversified offerings to customers, with some enabling customers to both invest in gold and avail credit based on gold. As fintech penetration grows, more startups are expected to offer differentiated products ranging from SIPs to gold trading.
- Meeting cultural significance Gold has a deep-rooted cultural significance in India, seen as a symbol of wealth and good luck. Fintech startups are leveraging this cultural affinity by providing digital solutions that make gold investments more accessible and convenient.
- Focus on rural markets Some fintech startups are focused on providing gold loans to rural people and allowing them to invest in digital gold in small amounts.
India’s digital gold rush is being fueled by new-age investment platforms that offer convenience, accessibility, and flexibility. These platforms allow users to invest in gold in small amounts, automate savings, and even lease their gold for extra returns. As the digital gold market continues to grow, these platforms are expected to play a significant role in shaping the future of investment in India.
