SAIF Partners has announced an investment in Capital Float, Bangalore based digital SME finance company.
Capital Float provides working capital loans to under-served small businesses in India via a technology-led loan origination and credit underwriting platform. The company was founded in 2013 by Gaurav Hinduja and Sashank Rishyasringa.
Both founders returned to India to start Capital Float after completing their MBAs at Stanford University. The company currently works with SMEs across Bangalore, Mumbai, Delhi, and select other cities in India, with a focus on e-commerce merchants, small manufacturers, and early-stage B2B service providers.
Capital Float is a Non-Banking Financial Company (NBFC). The company secured an initial round of angel funding earlier this year, and in June 2014 it announced a seed investment of US$ 2 million from the Aspada Investment Company, which is backed with a significant commitment from the Soros Economic Development Fund (SEDF).
“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.” [Ravi Adusumalli, Saif Partners]