Capital Float, an online lending platform has raised $25 million (Rs 170 Crore) in Series B financing led by Creation Investments Capital Management with also participation from existing investors SAIF Partners, Sequoia India, and Aspada.
This is the company’s third round of funding, bringing the total equity capital raised thus far to $42 million.
Capital Float offers loans to SMEs across the country via its digital platform. In over two years, the platform has originated Rs 400 crore in loans to small businesses across 40 cities, with 20x growth in the last year.
The company also provides loans to merchants who are sellers on various e-commerce platforms.
The fresh round of funds will be used by Capital Float to expand its lending footprint to over 20,000 SMEs in over 100 cities and introduce new products. It will also enable the company to widen capital sources on the platform, in addition to lending from its own balance sheet. Capital Float operates a lending marketplace with multiple large banks and NBFCs actively participating.
Founded in 2013 by Sashank Rishyasringa and Gaurav Hinduja, Capital Float is a digital finance company that provides loans to underserved small businesses in India.