Fintech startup Capital that is into offering loans to SME and retail borrowers has secured an investment of $15 million in a fresh round from Amazon.com, Ribbit Capital, SAIF Partners and Sequoia Capital, all of which are Capital Float’s existing investors, reports Livemint. With this, the total funds raised by this fintech startup totals around Rs 3,000 crore ($425 million), Rs 800 crore ($125 Million) in equity and Rs 2,200 crore ($300 million) in debt funding.
Capital Float says the funds will be deployed in more lending to customers in the same SME and retails segments.
These are indeed uncomfortable times for the lending institutions, particularly the non-banking finance companies under which category, Capital Float will also fall. The government and the RBI have called upon the lenders to go easy on the loan repayment dues offering moratoriums. If people don’t go back to their jobs and the SME’s don’t restart their operations, within a reasonable period of time, it could become very difficult to recover the outstanding loans in full.
In the case of Capital Float also, the company’s outlook has been rated negative only as recently as March 30, by India Ratings and Research. This is based on a Rs 107 crore loss posted by the startup.
“The latest funding round with the help of the existing partners has signalled strong support and trust in Capital Float’s vision of scaling up digital financial inclusion in India. At a time when the industry is faced with multiple challenges, we are grateful for this reinforcement and want to continue making lending effortless for SMEs and consumers across the nation," Livemint quotes Sashank Rishyasringa, co-founder of Capital Float as saying.