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Digital lending platform Capital Float has raised $45 million (₹293 crore) in Series C equity funding. The round was led by Silicon Valley-based Ribbit Capital, with participation from existing investors SAIF Partners, Sequoia India and Creation Investments.
In parallel, the company has raised over $67 million (₹437 crore) in new debt lines from leading banks including RBL Bank, IDFC Bank, Kotak Mahindra Bank and NBFCs IFMR and Reliance Capital, bringing the total amount of fresh capital raised in the past 12 months to over $112 million (₹730 crore).
“We are thrilled to partner with a world-class fintech investor like Ribbit Capital,” said co-founders Sashank Rishyasringa and Gaurav Hinduja in a joint statement. “We are growing at an exciting pace, currently originating over ₹200 crore in disbursals every month. Over the past year alone, we have disbursed loans of over ₹2,100 crore to 12,000-plus customers across 300 cities, largely in tier II and III cities and towns. Our proprietary technology and credit-scoring platform is now able to deliver loans in as fast as three minutes via a mobile app. We have kept our NPAs (non-performing assets) to 2 per cent and are on track to reach profitability by the end of the current fiscal year.”
Capital Float will utilise the funds to increase its geographic footprint to 500 cities and towns, improve customer experience and launch a new set of innovative credit products for SMEs across India. It will also invest in scaling up its hybrid marketplace model where it partners with banks and NBFCs to ‘co-lend’ to borrowers, and in deepening technology integrations with partner financial institutions.
The company lends to a wide range of sectors including manufacturing, services, e-commerce, transportation, hospitality and retail. Post-demonetisation, the company expanded its lending business to target small merchants and kirana stores, with loans from ₹25,000 up to ₹1 crore.
“Typically, our loans range ₹8-10 lakh over an 18-month term, on interest rates of 16-19 per cent” said Hinduja. The company’s assets under management (AUM) stands at ₹700 crore today, up from ₹190 crore same time last year. “We plan to end FY2018 with an AUM of ₹1,500 crore, with ₹450 crore in disbursals every month, serving 30,000 customers” he said.
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