Bangalore-based digital SME finance company Capital Float has raised $13 million in a round of funding led by SAIF Partners and Sequoia Capital, with participation from existing investor Aspada Investment. The company will use the funds to expand its technology, scale up nationally and to launch new loan products. Note that Capital Float had previously raised $1 million investment from SAIF Partners in August last year, just a month after it raised $2 million from Aspada Investment in July. The platform had also raised an undisclosed amount of angel investment in early 2014. Capital Float currently offers working capital loans from Rs 3 lac to Rs 1 crore to small businesses, through its technology-led loan origination and credit underwriting platform. It works with e-commerce merchants, early-stage B2B service providers and small manufacturers to provide three kinds of loans; loans against invoice, loans against purchase order and unsecured business loan. Loans against invoices are provided for up to 80% of the invoice value with a tenure of 30-180 days. Businesses can deliver goods to a customer and based on the invoice get a loan, which can be repaid after the customer pays or within 180 days. Loans against purchase orders are similar but rely on the purchase order instead of the invoice, and are provided only for up to 50% of the purchase order value with a tenure of 60-180 days. Unsecured business loans are for businesses looking to buy new inventory, expand capacity or workforce and service new orders etc.…
