Capital Float, a leading online lender for small businesses, has raised about ₹170 crore ($25 million) in a Series B round led by Creation Investments. Existing investors Aspada, Sequoia India and SAIF Partners participated in this round that valued the company at over $100 million. This is Capital Float’s third round of funding, bringing the total equity capital raised so far to $42 million.
With this round of funding, Capital Float will expand its footprint to over 20,000 SMEs in over 100 cities. It will also introduce new products online. The funds will also enable the company to widen capital sources on the platform. Besides lending from its own balance sheet, Capital Float operates a lending marketplace with the active participation of multiple large banks and NBFCs.
In two years, Capital Float has originated ₹400 crore in loans in more than 40 cities, with a 20 times growth last year. The company has partnered with leading aggregators such as Snapdeal and Paytm in B2C e-commerce, Alibaba in B2B e-commerce, Uber in transportation, Pine Labs and mSwipe in payments, and Via.com in travel to deliver credit to the entrepreneurial ecosystem that has been under-served by banks.
Source: Business Line
