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Online financing platform for SMEs Capital Float raises $1M from SAIF Partners

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VCCircle_Capital_Float_logoBangalore-headquartered Zen Lefin Pvt Ltd, the company behind Capital Float, an online platform that provides working capital finance to SMEs (small and medium enterprises) in India, has secured $1 million in funding from private equity firm SAIF Partners.

This funding comes just a month after the firm netted $2 million in investment from Bangalore-based Aspada Investment Company, a provider of long-term, growth capital to entrepreneurs who address large market needs.

"By taking a technology-driven approach, we are able to offer such businesses a unique set of cash-flow based lending products in a timely and efficient manner. Even today, many entrepreneurs prefer to borrow from informal sources for their convenience and speed. Our goal is to make the process of getting a business loan as simple as shopping online," said Sashank Rishyasringa, co-founder of Capital Float.

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Capital Float was founded by Rishyasringa and Gaurav Hinduja—both hold MBA degrees from Stanford University. Hinduja had worked at Gokaldas Exports, while Rishyasringa was an engagement manager at McKinsey & Company prior to starting Capital Float.

Capital-FloatCapital Float works with underserved small businesses via a technology-led loan origination and credit underwriting platform. It provides short-term loans to SMEs that can be used to purchase inventory, service new orders or optimise cash cycles. Borrowers can apply online in a short time, select desired repayment terms and receive funds in their bank accounts in seven days. The firm caters to SMEs across a variety of sectors, including manufacturing, services and e-commerce.

"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," said Ravi Adusumalli, managing partner at SAIF Partners.

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SAIF Partners is a leading VC & PE firm, and manages over $1 billion of investments in India. It has a portfolio of over 30 companies, including Makemytrip, JustDial, HomeShop18, One97, Speciality Restaurants, Havells, Karur Vysya Bank, Mindtree and IPCA Laboratories. SAIF recently invested $1.7 million in Noida-based Holiday Triangle Travel Pvt Ltd, the company behind TravelTriangle.com, an online marketplace for travel agents.


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