[Funding alert]: Capital Float raises $15M investment from existing investors
Bengaluru-based fintech lending startuphas raised $15 million funding from existing investors Ribbit Capital, Amazon, SAIF Partners, and Sequoia Capital India. The funding will be used to capital base and expand its lending operations to SMEs and Consumers.
This $15 million includes the $4.8 million it had raised as a top-up investment from existing investors Amazon Inc and Dinesh J Hinduja. The total equity raised by the fintech startup now stands at $125 million. It has also raised $300 million debt capital.
Sashank Rishyasringa and Gaurav Hinduja, Co-founders of Capital Float, said in a joint statement,
“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."
Founders of Capital Float: Sashank and Gaurav Hinduja
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.
The startup claims to have disbursed over $1.2 billion and has over million customers in India. The startup has customers across 300 cities. 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 II and Tier II 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.