Venture Capital and private equity firm SAIF Partners has invested $ 1 Mn in a Bangalore based digital finance startup Capital Float. Capital Float provides working capital loans to under-served small businesses in India via a technology-led loan origination and credit underwriting platform.
Launched back in 2013 by Gaurav Hinduja and Sashank Rishyasringa, Capital Float works with SMEs across Bangalore, Mumbai, Delhi, and select other cities in India, with a focus on ecommerce merchants, small manufacturers, and early-stage B2B service providers.
Sashank Rishyasringa explains
By taking a technology-driven approach, we are able to offer such businesses a unique set of cash-flow based lending products in a timely and efficient manner… Even today, many entrepreneurs prefer to borrow from informal sources for their convenience and speed. Our goal – simply put – is to make the process of getting a business loan as simple as shopping online. We are excited to partner with SAIF, and believe that their experience building world-class digital businesses in India will be invaluable in this journey.
Earlier this year, it had raised an initial round of angel funding and in June 2014 it announced a seed investment of US $ 2 Mn from the Aspada Investment Company.
Ravi Adusumalli, Managing Partner, SAIF Partners, said,
We really like the team at Capital Float and their approach to the business. We look forward to a mutually-fulfilling partnership with Capital Float, as they accelerate their journey to be a leading firm in this segment.