Monday, April 13, 2020

Capital Float Raises $15 Million in Equity Funding from Existing Investors in India

Capital Float, the leading digital lender in India, announced that it has completed a $15 Million (INR 110 crore) equity fundraise from its existing investors. Participants in the round included Ribbit Capital, Amazon, SAIF Partners, Sequoia Capital India. The company will be using 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 till date stands at $125 Million (INR 800 crore). The company has also raised $300 Million (INR 2,200 crore) in debt funding to date.

Since its inception, Capital Float has disbursed over $1.2 Billion (INR 8,800 crore) and has more than half a million customers in India. The company’s customer base is spread across 300 cities in the country, 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 insurance product and a “Find a Store” feature to help users during the current lockdown period.

“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 & Gaurav Hinduja, Co-Founders of Capital Float, in a joint statement.

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