capitalfloat

Capital Float, an online lending platform, has raised $25 million in a series B round of funding led by Creation Investments Capital Management, LLC, with significant participation from existing investors SAIF Partners, Sequoia India, and Aspada.

It claims the platform has originated Rs 400 Crore in loans to small businesses in over 40 cities. This round of funding capital will help Capital Float expand its lending footprint to over 20,000 SMEs in over 100 cities. In addition to lending from its own balance sheet, Capital Float operates a lending marketplace with multiple large banks and NBFCs.

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.

Flipkart Marketplace, which was launched in 2013, started offering sellers on its platform access to easy loans through lending partners Capital Float and Lendingkart, in September 2014. Similarly Snapdeal had also tied-up with Capital Float to launch Capital Assist, which essentially served the same purpose of providing sellers with easy access to working capital loans.

Previous funding

In February 2014, the company had raised $13 million in a round of funding led by SAIF Partners and Sequoia Capital, with participation from existing investor Aspada Investment.

Capital Float had previously raised $1 million investment from SAIF Partners in August 2014, just a month after it raised $2 million from Aspada Investment in July 2014. The platform had also raised an undisclosed amount of angel investment in early 2014.

Competition

– In July 2015, LendingKart raised $10 million from Saama Capital, Mayfield Fund, and individual investors Ashvin Chadha and Shailesh Mehta.

-Late last month, online credit management service CreditMantri had raised Series A funding worth $2.5 million from IDG Ventures, Elevar Equity and Accion Venture Lab. CreditMantri was to use the funds for platform development, hiring and build a user base. CreditMantri was founded by R Sudarshan, Gowri Mukherjee and Punja in 2012.

– In the same month, ecommerce marketplace ShopClues launched a financing platform for its vendors called Capital Wings, in order to help them raise funds to expand their business online. The company partnered with digital SME finance company Capital Float to offer working capital loans to small and medium businesses at low interest rates and without any collateral.