Capital Float, the fintech start-up that claims to be India's largest online lender, announced today that it has raised $ 22 million in new financing from companies around the world. 39; Amazon. At the end of last year, reports revealed that Amazon was considering investing in Capital Float as a continuation of its $ 45 million C series announced last August. The Bangalore-based start-up has confirmed to TechCrunch that Amazon's investment is indeed an extension of this cycle and brings the total equity that it has raised in the last 12 months to $ 67 million.
During the same period, Capital Float also raised $ 80 million in debt from banks and other financial companies, which it combines with its own balance sheet to finance loans to small businesses and other borrowers. Amazon India is part of several e-commerce platforms with which the company is associated to provide loans to sellers, including Snapdeal and Shopclues.
Since its inception in 2013 by co-founders Sashank Rishyasringa and Gaurav Hinduja, Capital Float has raised a total of approximately $ 110 million in equity from investors, including Ribbit Capital, SAIF Partners, Sequoia India, Creation Investments and Aspada. as well as lines of total debt of $ 130 million.
Over the past six months, Capital Float has added 50,000 new customers, bringing its total customer base to more than 80,000 people in more than 300 cities. The startup says that it currently disburses more than 10,000 loans each month and now has an outstanding loan portfolio of over $ 170 million, with a default rate of about 2 percent. About 70 percent of its loans are micro-loans ranging from Rs 25,000 to Rs 500,000 (approximately $ 376 to $ 7,530).
With the investment of Amazon, the start-up has set as ambitious goal to add 300,000 new customers and get over 800 million dollars of loans this year.
In a press release, Amazon India's national director, Amit Agarwal, said, "We are delighted to work with Capital Float and invest alongside other investors. We are very impressed by what Gaurav and Sashank have built and we support missionary entrepreneurs and management teams, credit in India is very underestimated and Capital Float brings the right kind of credit solutions to underserved segments and SMEs to help them reach their full potential. "
Over the past year, Capital Float has expanded its product line including products for small and medium manufacturers, retail outlets and school and professional construction loans. independent as doctors. He has also added new online payment gateways to facilitate the repayment of borrowings and started piloting deep learning subscription models that use data points such as image processing, geotags and new policies such as the goods and services tax. tax launched last year that is levied at each stage of the production chain and the demonetization of banknotes started by the government of Prime Minister Narendra Modi in 2016.