Amazon invests $22 million in Bangalore based fintech startup

Bangalore based fintech start-up Capital Float has raised $22 million (Rs 144 crores) in equity funding from Amazon.

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Bangalore based fintech start-up has raised $22 million (Rs 144 crores) in equity funding from . This latest fund raise takes ’s total equity funding to nearly $110 million from Amazon and other existing investors including Ribbit Capital, SAIF Partners, Sequoia India, Creation Investments, and Aspada. In addition, the company has also raised debt amounting to $130 million till-date (Rs 840 crores) from leading banks and NBFCs.

Capital Float has enabled large numbers of SMEs with customised credit solutions and is actively expanding into new customer segments. The company’s model of lending from own balance sheet as well as a co-lending model of loans for other lenders (banks and NBFCs) gives it access to large pools of capital to serve a vast customer base.

“We are tremendously excited to bring Amazon on board as an investor at this key juncture in Capital Float’s journey,” said Co-Founders Gaurav Hinduja and Sashank Rishyasringa in a joint statement. “This partnership has enormous potential. In the past 6 months alone, we’ve added several new products and crossed Rs 1,200 crores ($185 million) in overall loan portfolio outstanding. We’ve also achieved tremendous growth on the customer acquisition front, adding 50,000 new customers across the country. With this investment from Amazon, we enter FY19 with relentless focus to add 300,000 customers and originate over Rs 5,000 crores ($800 million) in loans this year.

The funds will be used to bolster Capital Float’s proprietary end-to-end digital loan origination system and to design credit solutions for customers.

“We’re excited to work with Capital Float and invest alongside other investors. We are highly impressed with what Gaurav and Sashank have built and we back missionary entrepreneurs and management teams. Credit in India is highly under-penetrated and Capital Float is bringing the right kind of credit solutions to the underserved and informally served segments of SMEs to help realize their full potential. The company is well positioned for the digital age with its strong technology and data-driven approach to lending.” said Amit Agarwal, SVP and Country Manager, Amazon India.

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