Capital Float partners with Credit Saison to further lend Rs 1,500 Cr to MSMEs in 2020
Indian fintech NBFC Capital Float on Thursday said that it has partnered with Japanese financial institution, Credit Saison to deliver working capital financing to Micro, Small and Medium Enterprises (MSMEs) across India.
As part of the announcement, Capital Float said that it plans to further lend Rs 1,500 crore to MSMEs next year, supported by this partnership.
In a statement to the media, Capital Float said that the two companies have jointly developed a unique co-origination model through which they will both contribute capital to deliver last-mile credit to MSMEs across the country.
Speaking about the partnership, Kosuke Mori, Managing Director, Credit Saison Asia Pacific said,
“Credit Saison plans to invest significantly in India and build a loan book of $1 billion in India over the next few years, a significant part of which will flow into the MSME sector. Our alliance with Capital Float – Credit Saison’s first SME-focused partnership in India – will be a formidable enabler for both entities to deploy a large portion of this capital towards the sector. We have also integrated closely at a technology stack and API level, enabling a seamless experience for the end-borrower.”
The partnership between Credit Saison and Capital Float has gone live this month with plans to scale up rapidly over the following quarters.
Sashank Rishyasringa, Co-founder, Capital Float said, “Capital Float has already lent Rs 8,500 crore in digital credit across India. We plan to further lend Rs 1,500 crore to MSMEs in the next year, supported by this partnership. Together with Credit Saison, we continue to double-down on MSME segments where credit demand is severely underserved, with a particular focus on Tier-II and III cities. Our focus will be on providing credit to small manufacturing and services firms, followed by small retailers using digital payment modes.”
Founded in 2013, Capital Float is the trade name for Capfloat Financial Services Private Limited (formerly known as Zen Lefin Private Limited), a non-banking finance company (NBFC) registered with the Reserve Bank of India.
The company has raised funding from marquee investors such as SAIF Partners, Sequoia India, Aspada Investments, Creation Investments Capital Management LLC, Ribbit Capital, and Amazon. Capital Float is headquartered in Bengaluru, with offices in Mumbai, Delhi-NCR, and other cities.
(Edited by Suman Singh)