Capital Float, India's largest online lending platform, has raised $25 million in a Series B funding round led by Creation Investments Capital Management.
Existing investors Saif Partners, Sequoia India, and Aspada joined the round, which brings the startup's total funding to $42 million.
Founded in 2013, Capital Float invites small business to fill in short loan applications online. Credit scoring algorithms then help make lending decisions in a matter of minutes, with funds distributed within 72 hours. Over the last two years the Bangalore-based startup has already made more than $60 million in loans to businesses in 40 Indian cities.
The new funding will be used to expand to 20,000 new SMEs in more than 100 countries and also help Capital Float to widen its capital sources - in addition to lending from its own balance sheet, it operates a lending marketplace with multiple banks participating.
Patrick Fisher, managing partner, Creation Investments, says: "SME lending represents a very large, underserved, and growing market opportunity in India. By leveraging technology, Capital Float has built a differentiated model that is able to deliver credit to the smallest of businesses in a scalable and efficient manner. We are impressed with their execution and the scale they have achieved in a relatively short period of time."