Capital Float, India's largest digital lender on Tuesday announced raising funds worth USD 22 million in equity funding from Amazon.
Capital Float has enabled large numbers of SMEs with customized credit solutions and is actively expanding into new customer segments. The company's unique 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.
"With this investment from Amazon, we enter FY19 with a relentless focus to add 300,000 customers and originate over RS. 50 billion (USD 800 million) in loans this year," added Gaurav and Sashank.
The funds will be used to bolster Capital Float's proprietary end-to-end digital loan origination system and to design innovative 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.