[Funding alert] Amazon-backed Capital Float raises $4.8M from existing investors

Backed by investors SAIF Partners, Sequoia India, Aspada Investments, Creation Investments Capital Management LLC, Ribbit Capital, and Amazon, Capital Float is an NBFC registered with the RBI.

Fintech startup Capital Float has raised $4.8 million as a top-up investment from its existing investors Amazon Inc and Dinesh J Hinduja. It had previously raised over $110 million in equity funding.

The company allotted 92,728 Series E2 Compulsory Convertible Preference Shares (CCPS) of the face value of Rs 100 each at a premium of Rs 3,899.34. Thus, aggregating to a consideration of Rs 37.08 crore, or $4.8 million. Amazon paid Rs 29.66 crore (or $3.89 million), while Dinesh J Ahuja invested Rs 7.41 crore (or $97,2872 approx).

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. Capital Float is headquartered in Bengaluru, with offices in Mumbai, Delhi-NCR, among others.

Earlier in January this year, Capital Float announced that it had partnered with Japanese financial institution Credit Saison to deliver working capital financing to Micro, Small and Medium Enterprises (MSMEs) across India. As part of this partnership, 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 had 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.

The Bengaluru-based digital lender had raised $22 million in equity funding from e-commerce giant Amazon Inc. in April 2018, as part of its Series C round. In the same year, Capital Float had acquired personal financial management app Walnut (Thumbworks Technologies Pvt Ltd), in a deal valued at $30 million.

Additionally, it had earlier raised $45 million in 2017 in a round led by Silicon Valley-based Ribbit Capital, along with participation from existing investors SAIF Partners, Sequoia India, and Creation Investments.

(Edited by Suman Singh)

Edited by Suman Singh