Capital Float raises 500 million in debt from Triodos IM

By Leandra Monteiro

Capital Float, an Indian BNPL and credit platform has raised INR 500 million in debt for a period of 3 years from Triodos Microfinance Fund and Triodos Fair Share Fund, financial inclusion funds managed by Triodos Investment Management.

Triodos IM, based in The Netherlands, is a wholly-owned subsidiary of Triodos Bank, one of the world’s leading sustainable banks, and manages EUR 5.4 billion in AUM.

Since January 2021, Capital Float has raised over INR 2 billion in debt. These funds are being strategically deployed towards scaling up growth in credit delivery, as the company has doubled its base over the last 8 months to over 2 million customers.

The company operates one of India’s fastest growing Buy Now Pay Later products, in partnership with online platforms and brands. It also offers a full suite of financial planning and management tools through its Walnut app, including small-ticket credit facilities for self-employed entrepreneurs and salaried professionals.

Sashank Rishyasringa, co-founder and MD, Capital Float said, “We are delighted to have Triodos IM as our long-standing debt partner and we truly value their support in our journey. This agreement reflects the strength of our association and further enables us to unlock new opportunities in digital credit in India. We appreciate the faith of our partners in our ongoing journey of revolutionizing financial services in India.”

Aditya Mohan, Senior Investment Manager, Triodos IM added, “Over the last three years, we have enjoyed a fruitful association with Capital Float. The company has demonstrated resilience and progressive growth year on year. We are pleased to renew our engagement and look forward to a strong and collaborative partnership with Capital Float.”

Capital Float claims it is currently maintaining a credit origination run rate of over 1.2 billion per month even through the 2nd wave of Covid, at collection efficiencies of around 95% and a NNPA of 1.56%. The company aims to cross 4 million credit customers by the end of this fiscal year, with a 2x increase in run rate disbursals.