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Capital Float raises $50M from Lightrock India

capital float funding

Capital Float, a fintech startup, announced that it has raised $50 million in an equity funding round led by Lightrock India.

The round also saw participation from new investors like David Velez, Founder of Nubank, Latin America’s largest fintech firm; Cred founder Kunal Shah; and Amrish Rau, CEO of Pine Labs.

Capital Float plans to use the freshly raised funds to scale its BNPL platform and expand its partner ecosystem.

In a press release, Capital Float’s co-founders Sashank Rishyasringa and Gaurav Hinduja said, “By solving for affordability as well as convenience, in a fully-regulated format, we believe that our BNPL approach can responsibly expand access to credit to over 100 million customers who are starting to transact online.”

Existing investors Sequoia Capital India, Ribbit Capital, Creation Investments Capital Management, and Dinesh Hinduja family office also participated in the latest round.

Capital Float has been advancing into BNPL very aggressively since the last couple of years, making a bigger play for the consumer lending pie. The startup claims to have 2.5 million customers using its platform, driving more than Rs 2,000 crore-worth online purchases annually.

It has partnered with platforms like Amazon, MakeMyTrip, Unacademy, and boAt Lifestyle to enable buyers to checkout using the BNPL option.

“We are now financing two million purchases every month across 14,000 pin codes while maintaining NPAs below 1.5 percent,” the co-founders said.

Commenting on the investment, Saleem Asaria, Partner at Lightrock India said, “Capital Float has solved the unique triumvirate of customer experience, risk management, and merchant partnerships that lies at the heart of unlocking the BNPL opportunity in India.”

“In addition to its strong technology platform, it has built a sophisticated underwriting and collections capability, along with an ethical lending playbook, that makes the model very compelling,” he added.

Established in 2013, Capital Float is the trade name for Capfloat Financial Services Private Limited, an NBFC registered with the Reserve Bank of India.

Capital Float seems to have established a strong presence in the fintech segment with its innovative platform. I believe the company will soon emerge as a dominant market player. My best wishes to the team of Capital Float.

Shishir Gupta, Founder and CEO, StartupLanes

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