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Lending platform Capital Float bags fresh funding from existing investors
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Bengaluru-based digital lender Capital Float has raised $15 million (approximately Rs 114.33 crore at current exchange rates) in funding from existing investors.

Existing investors include global technology giant Amazon, Sequoia Capital, Ribbit Capital and SAIF Partners.

The latest transaction takes the total equity funding raised by Capital Float to $125 million. It has also raised $300 million in debt funding, the company said in a statement.

The company will use the latest funding to boost its capital base and expand its lending operations to small and medium-sized enterprises and retail consumers.

“We are eager to significantly increase our lending capacity once the lockdown is lifted to enable SME growth and consumer spending at scale,” Sashank Rishyasringa, co-founder at Capital Float, said.

Capital Float, operated by CapFloat Financial Services Pvt. Ltd, was founded by Rishyasringa and Gaurav Hinduja 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 license.

In April 2018, the Bengaluru-based NBFC raised $22 million (around Rs 144 crore) in equity funding from Amazon. The funding was part of its $45-million Series C investment that it announced in August 2017.

In August 2018, the company acquired personal finance management app-maker Walnut for $30 million (Rs 209 crore) in a cash and stock deal. Walnut also counted Sequoia Capital and SAIF as investors.

Capital Float reported net sales of Rs 204.32 crore for the financial year ending March 2019. However, it reported losses of Rs 98.47 crore for the same period.

Deals in the NBFC segment

Last month, vehicle financing startup AutoMony raised $3 million (around Rs 22.28 crore) in its Series A funding round from a clutch of investors, including Asha Impact and Sundaram Finance. High net-worth individuals also participated in the investment.

Also in March, micro-lending focussed SmartCoin Financials Pvt. Ltd raised $7 million (approximately Rs 51.74 crore) in a round led by LGT Lightstone Aspada, the India-oriented impact investment arm of the LGT Lightstone.

In September last year, digital lending platform LoanTap raised $12 million (around Rs 85.08 crore) in a Series B investment round led by Avaana Capital, an Indian venture-growth investment firm.

Development financial institutions have also taken part in funding NBFCs across the country, with entities such as FMO and International Finance Corporation backing firms such as Aye Finance, InCred Financial Services and AU Small Finance Bank.

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