Bengaluru based digital lender Capital Float has raised $22 million in equity funding from e-commerce giant Amazon. The latest fund raise has taken up Capital Float’s total equity funding to nearly $110 million. In August, the digital lender had raised $45 million from investors like Ribbit Capital, SAIF Partners, Sequoia India, and Creation Investments.
With the last investment, the total equity capital raised by Capital Float in the last 12 months adds up to $67 million. The total equity capital raised by the company till-date has gone up to $107 million with the latest round of funding. The company has said that it will be using the funds raised for bolstering its proprietary end-to-end digital loan origination system and to improve customer experiences.
Speaking about the equity funding, co-Founders Gaurav Hinduja and Sashank Rishyasringa said in a joint statement, ““We are tremendously excited to bring Amazon on board as an investor at this key juncture in Capital Float’s journey. This partnership has enormous potential. In the past 6 months alone, we’ve added several new products and crossed $185 million in overall loan portfolio outstanding. We’ve also achieved tremendous growth on the customer acquisition front, adding 50,000 new customers across the country. With this investment from Amazon, we enter FY19 with relentless focus to add 300,000 customers and originate over $800 million in loans this year.”
Amit Agarwal, SVP and Country Manager of Amazon India said, ““We’re excited to work with Capital Float and invest alongside other investors. We are highly impressed with what Gaurav and Sashank have built and we back missionary entrepreneurs and management teams. Credit in India is highly under-penetrated and Capital Float is bringing the right kind of credit solutions to the underserved and informally served segments of SMEs to help realize their full potential. The company is well positioned for the digital age with its strong technology and data-driven approach to lending.”
Founded in 2013, Capital Float is an NBFC registered with the Reserve Bank of India (RBI). It offers specialized credit and financial loans to businesses and utilizes its own proprietary loan underwriting system to lend to potential borrowers.
Capital Float was founded in 2013 and is a Non-Banking Finance Company registered with the Reserve Bank of India. The company utilises its proprietary digital loan underwriting and origination platform to deliver financing solutions to large sections of the economy traditionally undeserved by large financial institutions.