Digital lending startup Capital Float on Monday said it has raised $15 million (₹110 crore) from its existing investors Ribbit Capital, Amazon, SAIF Partners, and Sequoia Capital India. The company said it will utilise the funds to boost its capital base and expand lending operations to small and medium enterprises (SMEs) and consumers.
Capital Float is among India’s most-funded financial services startups. The company has so far raised a total equity of $125 million (₹800 crore). Apart from equity funding rounds, the fintech firm has raised a total of $300 million (₹2,200 crore) in debt funding from major banks and non-banking financial companies (NBFCs).
Started in 2013 by Gaurav Hinduja and Sashank Rishyasringa, Capital Float claims to have disbursed over $1.2 billion (₹8,800 crore) and has more than half a million customers in India. The Bengaluru-based company’s portfolio includes a slew of financing products for SMEs, including brick-and-mortar retailers, wholesalers, restaurant owners, manufacturers, and kirana store owners. Besides loans to businesses, the startup also provides consumer lending. The company has customers across 300 cities.
“We’re eager to significantly increase our lending capacity once the lockdown is lifted, to enable SME growth and consumer spending at scale” said Rishyasringa and Hinduja, co-founders, Capital Float in a statement.
Industry experts point out that micro, small, and medium enterprises have offered huge potential for growth to fintech NBFCs but the challenge is to build capacity, not just in large cities but also in smaller towns while keeping the default rate low.