Digital lending startup Capital Float which helps SMEs and start-ups secure capital is reportedly in advanced stages of talks to raise around Rs 300 crore in a new funding round. This was first reported by Economic Times.
As per the report, US-based finance technology focused venture capital fund Ribbit Capital is in talks to lead the fresh capital infusion. It is also expected that existing investors SAIF Capital and Sequoia Capital will also participate, to maintain their stake in the company.
Post this funding round, the company is expected to be valued at around Rs 1,300 crore. It will use the fresh funds for expanding its lending portfolio to consumer financing and for financing kirana stores as well.
Ribbit Capital has been investing in India since 2014, and has already invested in Policybazaar.com, a Gurgaon-based fintech startup which acts as a financial marketplace. It has also invested in expense management application Money View, and a consumer lending startup ZestMoney, among others.
Earlier this year, Capital Float had raised debt capital from several investors. It raised Rs 15 crore from Mahindra & Mahindra Financial Services by allotting non-convertible debentures (NCDs) and Rs 17 crore from IFMR Capital Finance through NCDs in December.
Founded in 2013 and based in Bangalore with offices in New Delhi and Mumbai, Capital Float is an online platform that provides working capital finance to SMEs in India. It offers flexible, short-term loans which can be used to purchase inventory, service new orders or optimize cash cycles.
The company’s primary mission is to bridge the current gap in the financial market with innovative and flexible credit offerings for SMEs, delivered in an efficient and customer-friendly manner.
It recently partnered with Amazon India to enable e-commerce sellers to manage their dynamic working capital requirements. As per the company, e-commerce revenue is expected to significantly grow at an annual rate of 51 percent.