Even as revenue triples, Amazon-backed Capital Float reports a loss of Rs 92 Cr


Digital lending startup Capital Float reports 13 percent wider loss in FY18, even as revenue grows triple fold.

Bengaluru-based digital lending startup Capital Float has reported a total standalone revenue of Rs 135.10 crore in FY18. This is almost a triple fold growth from its total revenue of Rs 53.84 crore reported in FY17.

While revenue grew, the loss almost doubled for the company in FY18 and stood at Rs 92.1 crore for fiscal 2018. In FY17, the company reported a loss of Rs 63.47 crore.

In comparison, competitor Lendingkart's loss widened only by 13 percent to Rs 28.42 crore at a standalone level, while they increased by a third at a consolidated level, standing at Rs 52.2 crore in FY18.

Founders of Capital Float: Sashank and Gaurav Hinduja

According to filings, the expense incurred for employee benefits stood at Rs 75.1 crore. Further, the total expenses incurred by the company stood at Rs 227.2 crore.

This June, the company also announced its entry into consumer lending to increase their AUM (assets under management). Running pilots around the same for a year, during the launch, it announced that it was adding close to 15,000 B2C customers on a monthly basis.

The SME lender also acquired Pune-based finance management startup Walnut for $30M this August. This acquisition was to leverage Walnut’s underwriting capabilities as well as its direct digital credit line business to benefit the Capital Float ecosystem.

This April, the company also announced that it raised $22 million in equity funding from ecommerce behemoth Amazon. According to the founders, this was a continuation of the Series C round.

The company had earlier raised $45 million in August last year, led by Silicon Valley-based Ribbit Capital along with participation from existing investors SAIF Partners, Sequoia India and Creation Investments.

As of August this year, Capital Float has partnered with over 250 companies to provide consumer finance in the areas of education, vocational training, wellness, elective healthcare, home furnishings, electrical equipment, lifestyle, travel, fitness and consumer durables.