Credit platform Capital Float has raised $50 million (Rs 370 crore) in equity funding led by Lightrock India and joined by existing investors Sequoia Capital India, Ribbit Capital, Creation Investments, and Dinesh Hinduja family office.
Nubank founder David Vélez, Cred founder Kunal Shah, and Pine Labs CEO Amrish Rau also took part in the round.
Capital Float said it will use the fresh capital to strengthen and scale its ‘buy now pay later’ (BNPL) platform and expand its partner ecosystem.
The firm 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. It has partnered platforms like Amazon, MakeMyTrip, Unacademy, and boAt.
It has also launched a strategic partnership with Razorpay to expand services to over 100,000 merchants across the country.
“We see 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,” said Capital Float co-founders Sashank Rishyasringa and Gaurav Hinduja.
Capital Float, operated by CapFloat Financial Services Pvt Ltd, was founded in 2013. It works across sectors including e-commerce manufacturing supply chains, retail, travel, and digital remittances. It also holds a non-banking financial company licence.
In June 2021, Capital Float raised Rs 50 crore ($6.8 million) in debt for a period of 3 years from financial inclusion funds managed by Triodos Investment Management. The company has raised over Rs 200 crore in debt since January.
In April 2020, the Bengaluru-based firm raised $15 million (around Rs 114 crore) in equity funding from Amazon, Sequoia Capital, Ribbit Capital, and SAIF Partners.
Over the past year, the concept of BNPL has gained significant traction, fuelled primarily by young people looking to avail short-term credit to buy lifestyle goods and services. BharatPe, which is soon going for an IPO, is entering the consumer segment with a BNPL product soon.
Earlier this month, digital lending startup ZestMoney raised $50 million (Rs 368 crore) in its Series C round of funding from Australian BNPL firm Zip Co Ltd.
In March, KreditBee and Krazybee Services raised $70 million in funding just a month after a Series C round.