Capital Float is mainly competing with VCs-backed Lendingkart, which claims to have disbursed over 12,000 loans to more than 9,500 SMEs across 23 sectors

Capital Float, a leading online lending platform for small and medium businesses (SMBs) in India, has raised US$45 million in Series C round of funding, led by Silicon Valley-based VC firm Ribbit Capital.

The fintech firm’s existing backers SAIF Partners, Sequoia India and Creation Investments Capital Management also co-invested in this round.

In parallel, the company has also raised more than US$67 Million in new debt lines from leading banks (RBL Bank, IDFC Bank, Kotak Mahindra Bank, and NBFCs (including IFMR, Reliance Capital), bringing its total amount of fresh capital raised in the last 12 months to over US$112 Million.

Also Read: Singapore fintech startup Validus Capital raises US$2.9M to grow SME lending platform

Capital Float will use the capital to enhance its geographic footprint, improve customer experience and launch a new set of credit products for SMEs across India. Additionally, it will invest in scaling up its hybrid marketplace model and deepening technology integrations with partner financial institutions.

“Over the past year alone, we have disbursed loans of over INR 2,100 crore (US$330 million) to 12,000-plus customers across 300 cities. Our proprietary technology and credit-scoring platform is now able to deliver loans in as fast as 3 minutes via a mobile app. Despite achieving such rapid growth, we have kept our NPAs to 2 per cent, and are on track to reach profitability by the end of current fiscal year,” its Co-founders Sashank Rishyasringa and Gaurav Hinduja in a joint statement

The latest funding comes over a year after the fintech company secured raised US$25 million in Series B financing round, led by Creation Investments, with significant participation from SAIF Partners, Sequoia India, and Aspada.

Founded in 2013, Capital Float is a digital finance company that provides loans to underserved small businesses in India via a technology-led loan origination and credit underwriting platform. Businesses can apply online in minutes and get funds in less than 24 hours, claims the company.

Also Read: Capital Float launches collateral-free loans for women entrepreneurs

Its current product offerings include e-commerce seller financing, term loans, receivables financing, lines of credit, and commercial vehicle loans. Over the past year, the lender has diversified its portfolio, lending to a wide range of sectors including manufacturing, services, e-commerce, transportation, hospitality and retail.

In this domain, Capital Float is competing with peers, including Lendingkart Finance, which recently raised US$10 million in debt funding. As of 3rd August, Lendingkart has disbursed over 12,000 loans to more than 9,500 SMEs across 23 diverse sectors.

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