back Back

Capital Float raises $50m to cement leadership in BNPL in India

By Leandra Monteiro

September 28, 2021

  • BNPL
  • Capital Float
  • Equity
Share

Capital FloatCapital Float, a Buy-Now-Pay-Later platform, announced that it has raised $50 million in equity funding led by Lightrock India. Current investors Sequoia Capital India, Ribbit Capital, Creation Investments and Dinesh Hinduja family office also participated in the round, in addition to new investors David Vélez, Founder of Nubank, Kunal Shah, Founder of Cred, and Amrish Rau, CEO of Pine Labs.

The funds raised will be used to strengthen and scale Capital Float’s BNPL platform and expand its partner ecosystem. The company has witnessed rapid growth over the past year, with 2.5 million customers now using its product to finance over ₹2,000 crore of online purchases annually. Capital Float has partnered with platforms such as Amazon (powering Amazon Paylater), MakeMyTrip, Unacademy, and BoAt to help consumers finance purchases across e-commerce, D2C brands, travel, edtech and healthcare. It also recently launched a strategic partnership with Razorpay to expand BNPL to over 100,000 merchants across the country.

“We are now financing 2 million purchases every month across 14,000 pin codes, while maintaining NPAs below 1.5%. This positions us the market leader in BNPL in India today”, said co-founders Sashank Rishyasringa and Gaurav Hinduja in a joint statement. “More importantly, we see an exponential growth opportunity ahead from this point on. By solving for affordability as well as convenience, in a fully-regulated format, we believe that our BNPL approach can responsibly expand access to credit to over 100 million customers who are starting to transact online. We are privileged to have the support of our investors in pursuing this vision and are excited to work in partnership to build out a world-class digital financial institution for India.”

Saleem Asaria, Partner at Lightrock India said, “Capital Float has solved the unique triumvirate of customer experience, risk management, and merchant partnerships that lies at the heart of unlocking the BNPL opportunity in India. In addition to its strong technology platform, it has built a sophisticated underwriting and collections capability, along with an ethical lending playbook, that makes the model very compelling. We have also been consistently impressed with the tenacity and execution focus of the team through a full credit cycle. We are excited to work with the team to build a highly scalable, differentiated, and sustainable business that will positively impact the lives of millions of customers in India through digital credit and financial products.”

In addition to offering BNPL at checkout across its merchant partners, the company also operates Walnut, India’s popular personal finance app with over 12 million lifetime downloads. Walnut offers a range of personal finance features such as expense tracking, budgeting, and bill reminders, provides instant small-ticket loans to salaried and self-employed individuals 24×7, and recently launched insurance options on the app as well.

Previous Article

September 28, 2021

Synechron welcomes Rajeev Batra as Managing Director Insurance

Read More
Next Article

September 28, 2021

Neptune Networks announces the appointment of a new CEO

Read More








IBSi Daily News Analysis

Cybersecurity, financial services

May 17, 2024

BNPL

Most of KSA organizations uses AI in their cybersecurity strategies, study shows

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

May 17, 2024

Confida and illimity create new capillary proximity network, Pehi

Read More

May 17, 2024

dLocal expands partnership with Deel to 12 new countries

Read More

May 17, 2024

Dwolla & Visa to enhance Pay by Bank experience for businesses

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023