Startup of the week : Capital Float

capital float

Capital Float is a digital lending platform which aims to provide hassle free credit to the Small and Micro enterprises. Founded in 2013 by Sashank Rishyasringa and Gaurav Hinduja, Capital float is a trade name of Zen Pvt. Ltd., a private non banking finance company registered with RBI. They are helping thousands of SMEs to get flexible loans in a very short span.

The Problem :-

The biggest challenge an entrepreneur has to face is to raise capital for for bis business. Only about a fraction of the startups are blessed with investments during their initial stage. Most of the entrepreneurs have to rely on loans and advances from a bank, which is usually a very lengthy process and can be a hindrance in the growth of the business. The requirements of multiple documentation and a very slow process of approval is what causes delay in getting credit.

Solution :-

capital float process

This is where Capital Float comes into the picture. Their process of lending is hassle free and requires minimum documents. A borrower needs to fill a 10-minute online application form. He then needs to scan and upload the required documents. He gets the approval within a few minutes and the loan amount is credited to his bank account within 3 days.

Services Offered :-

Capital float is providing a number of financial services. Some of them are enlisted below :-

  1. Short term credit for SMEs :- A short term loan ideal for working capital requirements. loan amount is from ₹3 lacs to ₹50 lacs.
  1. Online Seller Finance :- A loan for the ecommerce sellers. Capital Float has partnered with all the top online marketplaces in India like Amazon, PayTM, Snapdeal, Myntra, Shopclues etc.
  2. Supply Chain Finance – A short term loan which involves zero collateral (no need to pledge any asset) and loan is granted by liquidating the outstanding invoices and receivables instantly to provide cash. Loan amount can be upto 80% of the invoice amount.
  3. Pay Later fFinance – A credit for SMEs to pay the suppliers for inventory replenishment. Loan amount can be from ₹25,000 to ₹50 Lakhs

Revenue streams and funding :-

Their revenues are generated by the interest they receive from the borrowers for their loans and advances. Capital Float received its seed funding of $2 millions in June 2014. In August 2014, it raised an additional $1 million of seed funding. It raised $13 millions in February 2015 in its series A round led SAIF Partners and Sequoia Capital. In May 2016, $25 millions were raised in its series B round led by Creation Investments Capital Management, LLC. In its series C round led by Ribbit Capital, it has recently raised $45 millions in August 2017.

Click here to apply for a loan now.

To read more, click – Startup of the week Archive.

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About Udit Goswami

A finance enthusiast, Udit Goswami is a CA Final student and an undergraduate from University of Delhi, currently working as an Article Trainee at Dhruva Advisors in the M&A Tax department.

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