Capital Float completes a $15 million equity round

$15 million from pre-existing investors to boost its capital base.

Indian based fin-tech firm Capital Float recently announced that it has raised $15 million from its already existing investors. The Non-bank lending firm disclosed that the fund raised will be exclusively used to strengthen its current capital base. While also ensuring the expansion of its operations. Capital Float is looking to include medium-sized businesses to its lending option as it currently only supports small scale business borrowers and consumers borrowers. The fund will make it possible for the lending startup to actualize its expansion goals. Capital Float has a huge customer base, expanding across over 300 cities in the country.   

Prior to this time, the lending startup already had huge investors, amongst which Ribbit Capital, Amazon, SAIF Partners, and Sequoia Capital India all participated in this funding round. This unyielding support shows investors believe in the firm’s vision of improving financial inclusion in India. 

Speaking on the event, Co-founders of Capital Float,  Sashank Rishyasringa and Gaurav Hinduja disclosed their joy in the success of the funding round. Pointing out that despite present global conditions, “we are grateful for this reinforcement and want to continue making lending effortless for SMEs and consumers across the nation”.

Adding that it is with great expectations we await the end of the COVID-19 epidemic, as this will enable us to considerably improve our lending capacity. While also enabling “SME growth and consumer spending at scale.”

According to Capital Float, since its inception, it has distributed over $1.2 billion and has over 500,000 customers in the country.

With this funding round, the start-up has raised a total of $125 million (Rs 800 crore), Alongside a whopping $300 Million (2,200 crore) in debt funding.

SMEs Borrowing to increase after COVID-19

With the current global economic state, a major sector that could see an influx of clients is lending. Most businesses are struggling to stay afloat and more people are looking to lenders to meet their credit requirements.

Conventional banking systems and microfinance institutions have not been left out of the dire economic state. Most are finding it difficult to continue carrying out their normal activities as even before the COVID-19 epidemic, the banking sector in India was already under a lot of pressure. 

Tech-enabled digital lenders like Capital Float might be the answer to keep SMEs afloat and viable post lockdown. The lending startup is also looking to improve its activities with its Fully Automated Small Term Loans (FAST Loans) specially made for SMEs. The FAST loan scheme is directed at meeting the capital needs of Tier 2 and 3 SMEs in India.

The lending startup alongside a partnership with Amazon is also looking to upgrade its Online Checkout Financing product. It is also working on Walnut, its Personal Finance Management (PFM) app. Alongside providing credit lines to users, Walnut also recently integrated a “Find a Store” feature and a COVID-19 insurance policy.  All great additions due to the current onslaught of COVID-19.