SAIF Partners Invest Over US$1M Into Capital Float.
SAIF Partners has recently invested a total of US$1 million into the digital SME finance company known as Capital Float. It secured an initial round of angel funding during early 2014, it announced a financial investment totaling to US$2 million from Aspada Investment Company.
With their headquarter based in Bangalore, India, Capital Float provides working capital loans to under-served small businesses in India through a technology-led loan origination and credit underwriting platform.
Managing Partner for SAIF Partner, Ravi Adusumalli commented on the investment stating,“SME lending presents a large and growing opportunity in India. We believe this segment requires a differentiated approach, with a potential to use technology to disrupt existing models. We really like the team at Capital Float and their approach to the business. We look forward to a mutually-fulfilling partnership with Capital Float, as they accelerate their journey to be a leading firm in this segment.”
The company was initially founded 2013 by Gaurav Hiduja and Sashank Rishyasringa. It currently works alongside SME all over Bangalore, Mumbai, Delhi, and select other cities in India, with a concentration on e-commerce merchants, small manufacturers, and early-stage B2B service providers.
Rishyasringa explained.“Even today, many entrepreneurs prefer to borrow from informal sources for their convenience and speed. Our goal – simply put – is to make the process of getting a business loan as simple as shopping online. We are excited to partner with SAIF, and believe that their experience building world-class digital businesses in India will be invaluable in this journey.”
Despite running some well adjusted growing businesses, entrepreneurs in India consistently struggle to raise a timely credit from banks. According to an official statement, Capital Float offers flexible, short-term loans that be used to purchase inventory, service new orders or optimize cash cycles. Borrowers can apply online, select desired repayment terms and receive funds in their bank account within seven days.