Amazon-backed Capital Float secures USD 50 Mn to expand partner base
Category: #business  By Pranali Mehta  Date: 2021-09-29
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Amazon-backed Capital Float secures USD 50 Mn to expand partner base

Capital Float, a buy now, pay later (BNPL) startup backed by Amazon, which offers its service on several prominent online platforms in India, has secured USD 50 million in new funding following significant growth in recent quarters.

The investment was led by Lightrock India which took the Bangalore-based firm’s all-time amount raised to around USD 600 million. The new round also saw participation from existing investors like Sequoia Capital India, Creation Investments, Ribbit Capital, along with leading entrepreneurs like Kunal Shah of CRED, David Vélez of Nubank, and Amrish Rau of Pine Labs.

It is to be noted that Capital Float is a lending partner for various prominent online platforms including Amazon India, airline Spicejet, direct-to-consumers lifestyle & electronics brand Boat, online learning service Unacademy, and travel booking firm MakeMyTrip are some of Cap.

Capital Float has a customer base of around 2.5 million. These customers make around 2 million purchases in a month and use the service to finance around USD 271 million a year.

The co-founder of the startup, Sashank Rishyasringa, mentioned that their customers can purchase anything with a loan at the time of check out.

He added stated that their customer base has more than quadrupled in the past 12 months, and their collection efficiency was still over 95% amid this period when several other organizations were witnessing a decline.

The fresh capital will help in catering to the continued growth that the startup has witnessed in recent months. The growth is majorly attributed to the pandemic, but the startup is making larger inroads due to some long-term changes in consumer behavior.

The buy now, pay later market is still emerging in India as only a fraction of the population holds a credit card, presenting a huge opportunity for Capital Float and BNPL startups like LazyPay and ZestMoney.

Source Credits:

https://techcrunch.com/2021/09/27/amazon-backed-buy-now-pay-later-platform-capital-float-raises-50-million/

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Pranali Mehta

Pranali Mehta    

Pranali Mehta boasts of over three years of experience as a content writer. Having completed her graduation in chemical engineering, she worked as safety & environment associate in a chemical company for a year. Harnessing her passion for writing however, Pranali deci...

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