MSME digital lending platform Capital Float has received a fresh infusion of funds to the tune of Rs 144 crores ($22 million). And this time the investment has come from Amazon as part of the startup’s Series C funding in the form of equity.
This amount of $22 million forms part of the $45 million funding for this round and the other investors to have already committed investments include Ribbit Capital, SAIF Partners, Sequoia India and Creation Investments.
With this, Capital Float’s total equity funding raised has moved up to $110 million from all the above investors, including Amazon. The debt funding raised by the startup is another $130 million. These funds have come from banks and NBFCs.
With the additional funding from Amazon the startup is hoping that it can invest in technological upgradations an expand the reach to 300, 000 customers, a fivefold increase from the current 60,000. The target for loan disbursals is $5,000 crores for the next financial year alone.
“The fresh fund-raise will be used in the areas of product innovation to improve the digital user experience and for the ease of applying for loans and continued investments in the credit assessment algorithm,” BusinessLine quotes Sashank Rishyasringa, co-founder of Capital Float as saying.
Capital Float targets the 50 million strong MSME sector in India to lend to. The company says it already has over 60,000 customers who have availed of some loan from Capital Float. Physically they are able to service in about 300 cities and towns. Amount advanced as loans so far stands at Rs 4,500 crores, of which more than a fair share has come in the financial year ending 2018.
Capital Float offers loans through its digital lending model and it uses funds from its own coffers as well as by participating along with banks and NBFCs in the lending process.