Bengaluru-based fintech startup, Capital Float, has received $22 million from Amazon for its online lending platform focused on small and medium businesses.
The new funding raised by the company, which is a non-banking financial company, will be put toward technology development and its loan book, according to Gaurav Hinduja, as reported by Livemint. Hinduja co-founded the startup with Sashank Rishyasringa.
“(We have) crossed Rs 1,100 crores ($170 million) in overall loan portfolio outstanding,” co-founders Hinduja and Rishyasringa said to Livemint. “We’ve also achieved tremendous growth on the customer acquisition front, adding 50,000 new customers across the country. With this investment from Amazon, we enter FY19 with relentless focus to add 300,000 customers and originate over Rs 5,000 crores ($800 million) in loans this year.”
The funds raised are in the form of equity funding, as part of a Series C round previously raised by the startup in August of last year. According to a company statement, Capital Float has recently released a range of new products with a focus on medicine and education.
Restaurants, wholesalers and smaller retailers are among clients of the startup. The recent funds bring the amount of equity funding raised by the company to $107 million.
“Capital Float is bringing the right kind of credit solutions to the underserved and informally served segments of SMEs to help realize their full potential,” Senior Vice-President of Amazon India, Amit Agarwal said. “The company is well positioned for the digital age with its strong technology and data-driven approach to lending.”
Since its founding in 2013, Capital Float has gained a presence in 300 cities nationally and is registered with the Reserve Bank of India. Other investors in the Series C round include Ribbit Capital, SAIF Partners, Sequoia India and Creation Investments.
Similar companies to Capital Float currently in the market include Lendingkart, Aye Finance, Neogrowth, and Intellegrow. Loans given by Capital Float typically range between Rs 10 lakh and Rs 12 lakh.
(Picture courtesy: http://smartceo.co/)