Digital lending startup Capital Float plans to raise INR300 crore capital

Capital Float, the digital lending startup operating the in domestic market, is in advanced discussions with US-based fintech-focused venture capital fund Ribbit Capital to raise INR300 crore capital. Besides Ribbit Capital, the existing investors such as Sequoia Capital and SAIF Partners are also expected to participate in the round. The startup, which specializes in lending to small and medium enterprises, will use the fresh funds for expanding its lending portfolio to consumer financing and for financing local general stores as well.

Founded in 2013, Capital Float has disbursed more than INR 1,000 crore worth of loans to over 6,000 merchants. It claims to have less than 1% default on loans and gives credit to its proprietary credit analytics software. The startup has emerged as a major technology-based lending player in this space after the November’16 demonetization move renewing interest in the financing options for small and micro enterprises. Other players in the industry include Lendingkart and Indifi Technologies. in December’16, the company had raised INR15 crore from Mahindra & Mahindra Financial Services by allotting non-convertible debentures (NCDs) and INR17 crore from IFMR Capital Finance through NCDs