Capital Float Raises $15 Million In Equity Funding From Existing Investors

Money & Banking

Digital lending start-up, Capital Float, announced that it has completed a $15-million (₹110 crore) equity fund-raise from its existing investors.

Participants in the round included Ribbit Capital, Amazon, SAIF Partners, and Sequoia Capital India. The company will utilise these funds to bolster its capital base and expand its lending operations to SMEs and consumers. With this new addition, the total equity raised by Capital Float to date stands at $125 million (₹800 crore). The company has also raised $300 million (₹2,200 crore) in debt funding to date.

“The latest funding round with the help of the existing partners has signalled strong support and trust in Capital Float’s vision of scaling up digital financial inclusion in India. At a time when the industry is faced with multiple challenges, we are grateful for this reinforcement and want to continue making lending effortless for SMEs and consumers across the nation. We’re eager to significantly increase our lending capacity once the lockdown is lifted to enable SME growth and consumer spending at scale,” said Sashank Rishyasringa and Gaurav Hinduja, co-founders of Capital Float, in a joint statement.

Since its inception in 2013, Bengaluru-headquartered Capital Float has disbursed over $1.2 billion (₹8,800 crore) and has more than five lakh customers in India. The company’s customer base is spread across 300 cities and includes both SME and consumer borrowers. In SME financing, Capital Float is focused on building its loan book with its latest product called FAST loans (Fully Automated Small Term Loans). This fully digital financing solution is designed to serve the working capital needs of SMEs in India, with a strong focus on Tier 2 and Tier 3 markets.

The company is also scaling its consumer finance vertical with the Online Checkout Financing product, where Amazon is a major partner, and its Personal Finance Management (PFM) app called Walnut. In addition to offering a personal credit line, Walnut also recently launched a digital Covid-19 insurance product and a “Find a Store” feature to help users during the current lockdown period.

Published on April 13, 2020

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