Digital gold investment platform Plus Gold has shut down its operations, the Inc42 reported, citing its co-founder and ex-CEO Veer Mishra.

The primary challenges that led to Plus Gold's closure included excessive operational expenses and the capital-intensive nature of the gold investment business.

A representative from Venture Catalyst, one of the company's investors, explained that the startup's financial model failed to develop sufficient strength to support long-term growth.

Plus Gold, which was established in 2022 by Veer Mishra and Raj Parekh, created a digital platform that simplified gold investment and savings for everyday users. The service enabled customers to invest in digital gold through flexible payment options or structured monthly investment plans.

The startup had raised over $1.2 million from JITO, Venture Catalysts and Signal Ventures in June last year.  Acko's Varun Dua had also invested in the company.

It gained popularity after appearing on the Indian startup reality show Shark Tank India Season 3.

Previously, Ahmedabad-based GoldPe, which had backing from 100X.VC, ceased operations in March this year.