Capital Float, an Amazon-backed startup that offers its buy now, pay later service on many popular online platforms in India, including that of the e-commerce company, said on Tuesday it had raised $ 50 million in a new round table after strong growth. in recent quarters.
Lightrock India led the Bangalore-based startup’s Series D funding round, bringing the company’s historic seven-year increase to over $ 200 million (more than half of which is in debt). Existing investors Sequoia Capital India, Ribbit Capital, Creation Investments as well as leading entrepreneurs David Vélez of Nubank, Kunal Shah of CRED and Amrish Rau of Pine Labs also participated in the new round.
Capital Float reaches its clients through partnerships with other companies. It is a loan partner for many popular online platforms including Amazon India, online learning service Unacademy, airline Spicejet, direct-to-consumer electronics and lifestyle brand MakeMyTrip. Their customers can make their purchases via a loan at the time of payment, explained Sashank Rishyasringa, co-founder of the startup, in an interview with TechCrunch.
The startup also has partnerships with payment company Razorpay to reach small and medium-sized businesses and with Walnut to offer personal finance to customers.
Capital Float has accumulated over 2.5 million clients. These customers, who make more than 2 million purchases per month, use the service to fund more than $ 271 million per year, the startup said. During the year, the start-up mainly focused on the online space, said Rishyasringa.
“Our customer base has more than quadrupled in the past 12 months, and our collection efficiency was still over 95% during this time when many other businesses were experiencing a decline,” he said.
This is a developing story. More soon…