Bengaluru-based online lending platform Capital Float has raised about $2.5 Mn (INR 17 Cr) from IFMR Capital Finance and its alternative investment fund.
Sashank Rishyasringa, co-founder of Capital Float said, “The NCD raise is for strengthening our lending books. This will enable us to fulfil the working capital requirements of SMEs; for both repeat borrowers from our existing customer base and for new customer acquisition.”
Launched in 2013 by Gaurav Hinduja and Sashank Rishyasringa, Capital Float is a digital financing platform that provides quick and easy capital to help businesses fund rapid growth. It works with SMEs, ecommerce merchants, small manufacturers, and early-stage B2B service providers to provide flexible, short-term loans.
The funding was secured by allotting non convertible debentures (NCDs). According to a report by ET, Capital Float allotted NCDs to IFMR Capital Finance and IFMR Fimpact Long Term Multiasset Fund in December 2016, as per documents filed with the RoC.
The startup will use the funds to lend to existing and new small and medium enterprises (SMEs).
Earlier in May 2016, it had raised $25 Mn (INR 170 Cr) in a Series B round of funding led by US-based Creation Investments Capital Management. Its existing investors SAIF Partners, Sequoia Capital and Aspada Ventures also participated in the round. Other players in this segment include Lendingkart, FlexiLoans, KredX, etc.