Digital lender Capital Float raises $15 million in equity funding from existing investors
Bengaluru-based digital lender Capital Float announced on Monday it has completed a $15 million (Rs 110 crore) equity fund-raise from its existing investors
Bengaluru: Bengaluru-based digital lender Capital Float announced on Monday it has completed a $15 million (Rs 110 crore) equity fund-raise from its existing investors.
Participants in the round included Ribbit Capital, Amazon, SAIF Partners and Sequoia Capital India.
The company said in a statement it would be using these funds to bolster its capital base and expand its lending operations to SMEs and consumers.
"With this new addition, the total equity raised by Capital Float till date stands at $125 million (Rs 800 crore), said the company which has also raised $300 million (Rs 2,200 crore) in debt funding to date.
Since its inception, Capital Float said it has disbursed over $1.2 billion (Rs 8,800 crore) and has more than half a million customers in India.
The company's customer base is spread across 300 cities in the country, and includes both SME and consumer borrowers.
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 2 and Tier 3 markets.
The company said it is also scaling its consumer finance vertical with the online checkout financing product, where Amazon is a major partner, and its personal finance management 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, it was stated.
"We're eager to significantly increase our lending capacity once the lockdown is lifted to enable SME growth and consumer spending at scale," said Sashank Rishyasringa & Gaurav Hinduja, Co-Founders of Capital Float.
Digital lending globally has begun to revolutionise the traditional lending business through the use of technology in order to reduce costs, underwrite with surrogate data points, and drastically speed up processes.
Capital Float raises $15 million from investors including Sequoia Capital, Ribbit Capital, among others
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