Capital Float raises USD 50 mn funding from Lightrock India, others

By: |
September 28, 2021 4:04 PM

The funds raised will be used to strengthen and scale Capital Float's BNPL (Buy-Now-Pay-Later) platform and expand its partner ecosystem, it added.

Fintech major Capital Float , Lightrock India, strengthen and scale Capital Float's BNPL, MakeMyTrip, Unacademy, and Boat, AmazonThe company said it has witnessed rapid growth over the past year,

Fintech major Capital Float on Tuesday said it has raised USD 50 million (about Rs 370.3 crore) in funding, led by Lightrock India. Current investors – Sequoia Capital India, Ribbit Capital, Creation Investments and Dinesh Hinduja family office also participated in the round, in addition to new investors David Vlez (Nubank founder), Kunal Shah (Cred founder) and Pine Labs CEO Amrish Rau, a statement said.

The funds raised will be used to strengthen and scale Capital Float’s BNPL (Buy-Now-Pay-Later) platform and expand its partner ecosystem, it added. The company said it has witnessed rapid growth over the past year, with 2.5 million customers now using its product to finance over Rs 2,000 crore of online purchases annually.

Capital Float has partnered with platforms such as Amazon (powering Amazon Paylater), MakeMyTrip, Unacademy, and Boat to help consumers finance purchases across e-commerce, D2C (direct-to-consumer) brands, travel, edtech and healthcare.
It also recently launched a strategic partnership with Razorpay to expand BNPL to over one lakh merchants across the country.

“We are now financing two million purchases every month across 14,000 pin codes, while maintaining NPAs below 1.5 per cent. This positions us as the market leader in BNPL in India today,” Capital Float co-founder Sashank Rishyasringa said.
Capital Float co-founder Gaurav Hinduja added that the company sees 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,” he stated.

Founded in 2013, Capital Float is the trade name for CapFloat Financial Services Private Limited, a Non-Banking Finance Company registered with the Reserve Bank of India. It has raised funding from marquee investors such as Aspada, Elevation Capital (formerly SAIF), Sequoia India, Creation Investments Capital Management LLC, Ribbit Capital, and Amazon.

In addition to offering BNPL at checkout across its merchant partners, the company also operates Walnut – a personal finance app with over 12 million lifetime downloads.

Walnut offers a range of personal finance features such as expense tracking, budgeting, and bill reminders, provides instant small-ticket loans to salaried and self-employed individuals 24/7, and recently launched insurance options on the app as well.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Telecom industry AGR up 5.7% to Rs 51,335 crore in April-June quarter
2Bank of Maharashtra Q2 net profit jumps 103% on higher interest income
3Coal crisis abates, but stocks may not return to normalcy soon