Capital Float Raises $22 Million from Amazon India

Amazon’s India arm invested Rs 144 crore (around $22 million) in the digital lending firm Capital Float.

In a media statement, the Bengaluru-based firm said it will use the funds to strengthen its end-to-end digital loan origination system and to design innovative credit solutions for customers. With the investment from Amazon, it is looking to add 300,000 customers and advance over Rs 5,000 crore in loans this year, Capital Float said.

With this latest round, the company has now raised $107 million (around Rs 711 crore) since its inception. It had last raised $45 million (around Rs 300 crore) in August 2017 from Palo Alto-based Ribbit Capital and other existing investors.

Founded in 2013, Capital Float is a non-banking finance company registered with the Reserve Bank of India. Its customers include small and big merchants selling on e-commerce platforms like Amazon and Flipkart, retailers and wholesalers, restaurants, and Kirana stores (family-owned stores) among others. As per the official website:

Capital Float is an online platform that provides working capital finance to SMEs in India. We offer flexible, short-term loans that can be used to purchase inventory, service new orders or optimize cash cycles. Borrowers can apply online in minutes, select desired repayment terms and receive funds in their bank accounts in 3 days with minimal hassle. Capital Float is the trade name of Zen Lefin Pvt. Ltd., a non-banking finance company (NBFC) registered with the RBI. The company is headquartered in Bangalore. Our management team consists of experienced professionals with prior careers in blue-chip companies such as McKinsey & Company, Gokaldas Exports, Oracle, Citibank, Capital First, and Wipro. They also hold advanced degrees from leading universities around the world such as Stanford University, Princeton University, IIT Mumbai, The London School of Economics and Delhi University.

“Credit in India is highly under-penetrated, and Capital Float is bringing the right kind of credit solutions to the under-served and informally served segments of SMEs to help realize their full potential,” Amit Agarwal, senior vice president and country manager at Amazon India, said.

Capital Float said it currently has about 50,000 customers across 300 cities in India and its average loan-ticket size is between Rs 10-12 lakh.

Locations served by Capital Float:

Delhi NCR: New Delhi | Ghaziabad | Faridabad | Noida | Gurgaon | Greater Noida | Bahadurgarh | Kundli

Haryana and Punjab: Barnala | Chandigarh | Mohali | Derabassi | Zirakpur | Jalandhar | Ludhiana | Rajpura

Himachal Pradesh: Panchkula | Baddi | Parvanoo | Nalagarh

Rajasthan: Jaipur | Chomu | Bhakrota | Bagru | Jodhpur | Udaipur

Uttar Pradesh: Agra | Lucknow

Andhra Pradesh: Guntur | Rajahmundry | Vijayawada | Visakhapatnam

Karnataka: Bengaluru | Hoskote | Belgaum | Bellary | Kolar | Narasapura | Mysore | Tumkur | Udupi

Kerala: Cochin | Ernakulam

Tamil Nadu: Chennai | Sriperumbudur | Coimbatore | Dharmapuri | Erode | Hosur | Kanyakumari | Madurai | Namakkal | Salem | Thiruvallur | Tiruchirappalli | Tirupati | Tiruppur | Vellore

Telangana: Ghatkesar | Hyderabad | Secunderabad | Shadnagar

Puducherry: Pondicherry

Chhattisgarh: Raipur

West Bengal: Hoogly | Howrah | Kolkata | Serampore | North 24 Parganas

Gujrat: Ahmedabad | Rajkot | Surat | Vadodara

Madhya Pradesh: Bhopal | Dewas | Indore | Jabalpur | Pithampur

Maharashtra: Mumbai | Thane | Navi Mumbai | Virar | Bhayandar | Kalyan | Ulhasnagar | Nagpur | Nasik | Pune