Capital Float, an online lending platform has raised $22 million (Rs 144 crore) from e-commerce giant Amazon in the latest round of funding. The investment is an extension of Capital Float’s Series C round of funding, in which it had raised $45 million  (Rs 293 crores) in August last year from Ribbit Capital, with participation from existing investors – SAIF Partners, Sequoia India, and Creation Investments.

In a statement, the Bangalore-based company said that the latest investment takes Capital Float’s total equity funding to nearly $110 million. In addition, the company has also raised debt amounting to $130 million till-date (Rs 840 crores) from leading banks and NBFCs.  Lending companies raise debts to replenish their loan books.

Capital Float will use the fresh capital to strengthen its technology and add more credit products in the future. The company aims to add 300,000 customers and originate over Rs 5,000 crores ($800 million) in loans this year. In the past 6 months, it has crossed Rs 1,200 crores ($185 million) in overall loan portfolio outstanding, and have added 50,000 new customers across the country.

The digital lending company offers working capital loans from Rs 3 lakh 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.

Previous Funding

Before its Series C in August last year,  the company had raised $13 million in a round of funding in February 2014, 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

A bunch of technology platform has joined the lending space off lately in the country. We recently reported that mobile wallet company Mobikwik is working on the launch of a lending product that will offer instant credit to customers directly from its app.  Fintech giant Paytm is too trying to enter the lending space and is seeking a license from the Reserve Bank of India (RBI) to become a peer-to-peer lending platform. Other than these two, there are players like NeoGrowth, Paytm-backed CreditMate, CASHe, LendingKart, MoneyTap, EasySalry, Faircent, LoanMeet amongst others.

Besides fintech players, e-commerce players like Amazon and Flipkart too are eyeing this space. Note that this is Amazon’s third investment in the financial technology space in India. In 2015, Amazon had earlier invested in BankBazaar and Qwikcilver Solutions in 2015.