New Delhi: Across the country, the methods of purchasing gold and silver are undergoing a significant transformation. In this era of change and digitalisation, did you know that the market for ‘Digital Gold’ is also growing rapidly throughout India? Digital Gold is subject to neither the regulations of the RBI nor those of SEBI. Despite this, it is estimated that by the year 2025, Indian citizens will have accumulated approximately 45 tons of digital gold.
People no longer consider it necessary to visit a physical store to purchase jewellery. Furthermore, they do not even feel compelled to invest in Gold ETFs. Instead, people find it convenient to purchase digital gold worth as little as ₹100—right from the comfort of their homes—using UPI-enabled apps. The primary catalyst behind this shift is none other than SafeGold, a startup based in Mumbai.
key highlights
- Mumbai-based startup, B2B2C model
- Powers: PhonePe, CRED, JioFinance, Amazon
- Also: Tanishq, BharatPe, Jupiter, MobiKwik
- 3.7 million transactions per day
- ~1 tonne of gold is sold every month
- 90% business via partner app APIs
- Buy from ₹10 via UPI apps at home
- No physical store visit needed
- No Gold ETF account required
- SafeGold’s backend powers each transaction
- Real gold stored & backed physically
How Are People Buying Digital Gold via Apps?
People are actively purchasing digital gold—in denominations as low as ₹10—directly through UPI apps, without ever having to leave their homes. This company provides the underlying infrastructure for purchasing digital gold within various popular applications such as PhonePe, CRED, JioFinance, Amazon, Tanishq, BharatPe, Jupiter, and MobiKwik. SafeGold processes 3.7 million transactions daily and facilitates the sale of approximately one ton of gold every month.
Learn How Digital Gold Works
You may be wondering: how exactly does digital gold function? Understanding this mechanism is crucial. Ria Chatterjee, Co-founder of SafeGold, explains that just nine years ago, it was impossible to purchase gold from the comfort of one’s home. “We set out to ensure that people could access the benefits of genuine gold savings through a digital medium,” she states.
A key aspect of this model is that SafeGold does not sell directly to end consumers. Instead, it operates on a B2B2C (Business-to-Business-to-Consumer) model. The company provides APIs (Application Programming Interfaces) to other applications. Consequently, whenever a user purchases gold via PhonePe or any other partner app, SafeGold’s backend system powers the transaction. In fact, 90 per cent of the company’s business is generated through such partnerships.
Discover the Scale of the Business
SafeGold operates a business of considerable magnitude. According to a report, the company generated a turnover of approximately ₹6,866 crore in the 2024-25 fiscal year. While the company incurred a net loss of ₹12 crore, its EBITDA turned positive—a promising sign. Concurrently, the digital gold market across India is witnessing rapid growth. By 2025, Indians are estimated to have accumulated approximately 45 tons of digital gold, valued at roughly ₹55,000 crore. In October 2025 alone, over 116 million gold transactions were executed via UPI.
What are the Risks Involved in Buying Digital Gold?
Currently, neither the RBI nor SEBI has established specific regulations governing digital gold. Furthermore, unlike the stock market or mutual funds—where mechanisms exist to safeguard investors in the event of fraud or corporate insolvency—there are no such protective measures in place for digital gold investors. In 2022, *Mint* highlighted this regulatory gap. Subsequently, in November 2025, SEBI issued a warning stating that the digital gold sector remains unregulated.
What Does the Future Hold for Digital Gold?
According to experts, the government will likely have to choose one of three potential approaches:
1. Bring digital gold under the regulatory ambit of SEBI to ensure investor protection.
2. Structure it as a commodity-linked product—similar to Bullion ETFs.
3. Enact a comprehensive new legal framework that clearly defines protocols for deposits, audits, withdrawals, and platform accountability.
Akshat Pandey suggests that the most prudent course of action would be to regulate the underlying infrastructure and ecosystem, rather than merely regulating the gold itself.
