Breaking News

Fin-tech startup “Capital Float” raises $2.5 Mn From IFMR Capital


Capital Float is a finance technology startup which helps SMEs secure capital online

Bengaluru – Feb 06, 2017. RedNewswire/-

Bengaluru-based online credit platform Capital Float has raised $2.5 Mn from IFMR Capital Finance and its alternative investment fund.

The company has raised funds by allotting non-convertible debentures (NCDs). NCDs are basically loan-linked bonds but cannot be converted into stocks. They, however, offer a higher rate of interest than convertible debentures.

The fresh funding will be used to lend to existing and new small and medium enterprises (SMEs).

Capital Float was founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa. It is a digital financing platform that provides quick and easy capital to help businesses fund rapid growth. It also has offices in New Delhi and Mumbai.

It works with SMEs, ecommerce merchants, small manufacturers, and early-stage B2B service providers to provide flexible, short-term loans.

Sashank Rishyasringa, co-founder of Capital Float said..

“The NCD raise is for strengthening our lending books. This will enable us to fulfil the working capital requirements of SMEs; for both repeat borrowers from our existing customer base and for new customer acquisition.”

In May 2016, the company had raised $25 Mn in a Series B round of funding led by US-based Creation Investments Capital Management. In February 2015, it had raised $13 million in its Series A round from SAIF Partners and Sequoia Capital. It had also raised $1 million in August 2015 and $2 million in June 2015 as a part of seed funding round.

Featured image source