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Digital lending platform Capital Float has raised $45 million (Rs 293 crore) in Series C round of funding, led by Silicon Valley-based Ribbit Capital. The round also witnessed participation from existing investors - SAIF Partners, Sequoia India and Creation Investments.
Separately, the company has also raised more than $67 Million (Rs 437 crore) in debt from leading banks (including RBL Bank, IDFC Bank, Kotak Mahindra Bank) and non-banking financial corporations including IFMR and Reliance Capital. This brings the total amount of fresh capital raised in the last 12 months to over $112 million (Rs 730 crore).
“We are growing at an exciting pace, currently originating over Rs 200 crore in disbursals every month. Over the past year alone, we have disbursed loans of over Rs 2,100 crore to 12,000 plus customers across 300 cities. Our proprietary technology and credit-scoring platform is now able to deliver loans in as fast as 3 minutes via a mobile app. Despite achieving such rapid growth, we have kept our NPAs to 2%, and are on track to reach profitability by the end of current fiscal year,” co-founders Sashank Rishyasringa and Gaurav Hinduja said in a joint statement.
Capital Float will utilise these funds to increase its geographic footprint, 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 and deepening technology integrations with partner financial institutions.
Sequoia is delighted to re-invest in Capital Float. Their strong customer focus and continuous drive to diversify the product portfolio to discover and meet niche areas of industry demand gives us great confidence in the company’s future prospects,” added Gautam Mago (Managing Director), Sequoia Capital India Advisors.
Patrick Fisher (Managing Partner & Founder), Creation Investments, another returning investor, pointed out to the positive atmosphere created by government policies. "With the government's drive towards a digital India, we believe the FinTech sector will be a key enabler towards achieving this vision. Capital Float has proven itself as a leader in the digital lending space and hence they have our wholehearted support. We hope with this fresh infusion of funds, the company will reach even greater heights," he said.
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