Capital Float secures $50 million from Lightrock India and others

0
1
Capital Float. Bengaluru. December 2020. Photograph by Nishant Ratnakar

India based lending platform, Capital Float has raised $50 million in equity round funding led by Lightrock India in participation from its existing investors including Sequoia Capital India, Ribbit Capital, Creation Investments, and Dinesh Hinduja family office.

The round also attracted new investors like David Vélez (Founder of Nubank), Kunal Shah (Founder of Cred), and Amrish Rau (CEO of Pine Labs).

According to the statement issued, “Capital Float will utilize the raised funds to strengthen and scale its BNPL platform as well as to expand its partner ecosystem.”

The company has witnessed rapid growth over the past year, with 2.5 million customers now using its product to finance over ₹2,000 crores of online purchases annually, and has recently announced a strategic partnership with Razorpay to expand BNPL to over 100,000 merchants across the country.

Speaking on the funding, Capital Floats’ Co-founders, Sashank Rishyasringa & Gaurav Hinduja in their joint statement said, “We are now financing 2 million purchases every month across 14,000 pin codes while maintaining NPAs below 1.5%. This positions us as the market leader in BNPL in India today. “More importantly, we see an exponential growth opportunity ahead from this point on.”

“By solving for affordability as well as convenience, in a fully-regulated format, we believe that our BNPL approach can responsibly expand access to credit to over 100 million customers who are starting to transact online. We are privileged to have the support of our investors in pursuing this vision, and are excited to work in partnership to build out a world-class digital financial institution for India,” they said.

Commenting on the investment in Capital Float, Saleem Asaria, Partner at Lightrock India, said, “Capital Float has solved the unique triumvirate of customer experience, risk management, and merchant partnerships that lies at the heart of unlocking the BNPL opportunity in India.”

“We have also been consistently impressed with the tenacity and execution focus of the team through a full credit cycle. We are excited to work with the team to build a highly scalable, differentiated, and sustainable business that will positively impact the lives of millions of customers in India through digital credit and financial products,” Asaria further added.

LEAVE A REPLY

Please enter your comment!
Please enter your name here