Capital Float said that it has raised debt of €6 million (Rs 48 crores) from the Netherlands-based asset management company, Triodos Investment Management (Triodos IM). The latter is a wholly-owned subsidiary of Triodos Bank, one of the world's leading sustainable banks, and manages EUR 3.3 billion in AUM. This takes Capital Float's total debt raise to $130 million (Rs 840 crores). The company has raised $107 million ((Rs 695 crores) in equity thus far.
Triodos IM is the first international investment management company to invest in debt at Capital Float through its investment funds Triodos Fair Share Fund and Triodos Microfinance Fund. Through this collaboration, Triodos IM intends to increase its strategic focus on SME lending in India. Capital Float will leverage the funds from the debt raise for the purpose of onward lending, as the company continues adding to its existing AUM of over Rs 1200 crores.
“We're delighted to have Triodos IM join our prominent list of investors. We've previously raised debt from some of the largest banks and NBFCs in India, such as Kotak Mahindra Bank, Axis Bank, Reliance Capital and Northern Arc Capital (formerly IFMR Capital). This collaboration with Triodos IM indicates Capital Float's ever-growing reputation in the international financial circles. Investments like these will help put digital lending in India in the international spotlight. With this fresh injection of funds, we will strengthen our focus on expanding our MSME borrower segments,” said Gaurav Hinduja and Sashank Rishyasringa, co-founders of Capital Float, in a joint statement.
Aditya Mohan, Senior Investment Officer said, “Triodos IM has been working with companies that are the frontiers of financial services in emerging economies for over two decades, and the role of technology in delivering financial services in these markets has increased exponentially in recent years. We are pleased to partner with Capital Float and are enthused by their approach of using technology as an enabler for collaboration in financial services. We look forward to contributing to a digital eco-system which can make credit accessible and affordable to MSMEs.”
Northern Arc Capital performed a crucial role in facilitating the debt raise between Capital Float and Triodos IM. “Northern Arc partners with clients across various sectors and phases of their life-cycle. Basis our diligence we take balance sheet exposures and enable these entities to access reputed global and domestic investors who value Northern Arc's skin-in-the-game.We are excited to have played a critical role in an important transaction. The investment by Triodos IM in Capital Float is a great demonstration of our commitment to back clients in every way possible along their growth path,” said Dr. Kshama Fernandes – MD & CEO Northern Arc Capital.