Ecommerce major Amazon has invested ₹144 crore in Capital Float,a platform that provides financial backup for small and medium enterprises (SMEs) through a series C funding round. The total funding raised by Capital Float company is now nearly $110 million.
Founded in 2013 by Stanford University alumni Sashank Rishyasringa and Gaurav Hinduja, Capital Float provides short terms working capital to SMEs.
It has so far disbursed ₹4,500 crore in loans to around 60,000 customers. This round will be used by the company to do product innovations and build proprietary underwriting algorithms.
Amazon has been investing in finance-based startups to expand its customer base in India. Earlier this, Amazon had talks with insurance startup Acko.
“We have been working with Amazon by financing sellers on their marketplace.
In the past six months alone, we’ve added several new products and crossed Rs1,200 crore in overall loan portfolio outstanding,” said Capital Float co-founder Hinduja.
With this investment Amazon gets a strong hold on India’s fintech industry.
“Credit in India is highly under-penetrated and Capital Float is bringing the right kind of credit solutions to the underserved and informally served segments of SMEs to help realize their full potential. The company is well positioned for the digital age with its strong technology and data-driven approach to lending,” said Amit Agarwal, country manager of Amazon India.