Manipal Group Chairman Ranjan Pai?s investment office Claypond Capital and private sector lender Axis Bank Limited (BSE:532215) are in talks to invest in gold loan startup Rupeek (Rupeek Fintech Pvt Ltd.), according to sources aware of the matter. The round will likely see the valuation of the Accel Partners-and Peak XV Partners Operations LLC-backed firm being cut, they said. Talks with Axis Bank are in early stages and the new investor consortium is finalising its plans, they said.

?Pai?s office is looking to invest in Rupeek but the amount has not been finalised yet,? said one of the persons. ?Axis Bank?s participation will also be key to the deal.

The valuation would be around $200 million - $250 million.? The round will also see existing investors part-sell shares. ET first reported on March 15 about a potential down round at Rupeek aided by a slowdown in business and a regulatory crackdown on the sector.

A down round is when a company raises new capital at a lower valuation than in the previous one. Manipal?s Pai declined to comment. Rupeek?s Chief Executive Officer Sumit Maniyar and Axis Bank didn?t respond to queries.