Capital Float, a digital lending startup is reportedly is in advanced talks to raise around Rs 300 crore in a new funding round.
According to the media reports, Ribbit Capital, the US-based finance technology focused venture capital is in talks to lead the fresh round of funding. It is believed that existing investors SAIF Capital and Sequoia Capital will also participate in the latest round so that their stake in the company is maintained. The company plans to utilise the fresh funds for expanding its lending portfolio to consumer financing and for financing kirana stores as well. After this round, the company is expected to be valued at around Rs 1,300 crore.
Founded in 2013, the startup is based in Bengaluru with offices in New Delhi and Mumbai. The fintech startup is an online platform that provides working capital finance to SMEs in India. The company offers flexible, short-term loans that can be used to purchase inventory, service new orders or optimize cash cycles. With the help of this platform, 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. Talking about their management team, it 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.
Earlier in 2017, the startup had raised debt capital from several investors. It raised Rs 15 crore from Mahindra & Mahindra Financial Services by allotting non-convertible debentures (NCDs) and Rs 17 crore from IFMR Capital Finance through NCDs in December 2016. Not only this, Capital Float has recently partnered with Amazon India to enable e-commerce sellers to manage their dynamic working capital requirements.
Talking about Ribbit Capital, it has been investing in India since 2014. The firm has invested in companies like Policybazaar.com, a Gurgaon-based fintech startup, consumer lending startup ZestMoney to name few.