Capital Float
Capital Float. Bengaluru. December 2020. Photograph by Nishant Ratnakar

Capital Float, a well-known name in the Buy Now Pay Later and credit provision market, which is deeply invested in fulfilling the financial and money-related needs of employees in India (from those receiving a salary, to those who are self-employed), has just raised a whopping ₹50 crore in debt from Triodos Fiar Share Fund and Triodos Microfinance Fund (the two investments arms of the Netherlands-based bank Triodos Investment Management) for a period of 3 years. This deal comes after the two parties agreed to extend their previous partnership (which concluded recently after a period of 3 years).

Founded in 2013, Capital Float is among the first start-ups in the country to provide easy credit to its users through a mobile interface. Perhaps owing to the financial crunch that thousands and millions of employees have had to face due to the COVID, Capital Float currently stands at a credit origination run rate (the process of supplying fresh credit loans to consumers) of a solid ₹120 crore per month. The firm is also noting collection efficiencies (the ratio of total revenue realised to total revenue billed) of as high as 95%, and an NNPA of 1.56%.
With the aim of serving over 4 million credit customers by the end of fiscal year 2021, the company has raised an impressive sum of more than ₹200 crore in debt since the start of this year. Seeing unprecedented growth, the startup has already noted a doubling of its user base in the past 8 months, now standing at around 2 million beneficiaries. The new funds will be strategically allocated towards areas needing improvement, so that the company can focus on expanding its business further.
In case you are unaware, Capital Float is the trading arm of CapFloat Financial Services Private Limited, a Non-Banking Finance Company (NBFC) that’s registered with the Reserve Bank of India. The firm has forged a partnership with a number of market A-listers, to provide quick and easy financial aid to consumers online. Loans are provided with minimum possible hassle to users, and paying back is simple, with the help of UPI platforms like Paytm.
Credit score is determined automatically by the company’s website, which helps it set up a practical BNPL limit for users. Users can also opt for auto-payback (for which they need to have a bank account in the banks with which the credit firm has collaborated). If enabled, this feature automatically makes payment of the EMIs every month, and users don’t have to worry about missing payment deadlines.
Looking forward to the deal, the co-founder and MD at Capital Float, Shashank Rishysringa, said, “We are delighted to have Triodos IM as our long-standing debt partner and we truly value their support in our journey. This agreement reflects the strength of our association and further enables us to unlock new opportunities in digital credit in India. We appreciate the faith of our partners in our ongoing journey of revolutionizing financial services in India.”
Aditya Mohan, Senior Investment Manager at Triodos IM, also expressed his views on the renewal of the partnership, saying, “Over the last three years, we have enjoyed a fruitful association with Capital Float. The company has demonstrated resilience and progressive growth year on year. We are pleased to renew our engagement and look forward to a strong and collaborative partnership with Capital Float.”