Amazon Invests Rs 144 Crore in Capital Float; Planning to Get Stronger Hold on India's Fintech Space
Amazon is known for expanding its base.
Amazon is India’s biggest e-commerce website and is now expanding its financial technology. It is expected that Amazon is going to invest a whooping amount of $22 million (approx. Rs.144 Crore) in a Bengaluru’s booming start-up ‘Capital Float.’ Capital Float is a financial start-up which provides a platform for SMEs (Small and Medium Enterprises). Just like the yester year this investment will also be a part of the company’s Series C round.
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Last year, Amazon had invested around $45 million (approx. Rs293 Crore) in a US oriented start-up Ribbit Capital. The results were mind-blowing as the investment was raised by a profit and now the total revenue of the company is around $110 million.
Capital Float is established by Sashank Rishyasringa and Gaurav Hinduja. Both Sashank Rishyasringa and Gaurav Hinduja hail from India and have their professional degrees from the best University in the world Stanford University. The foundation for Capital Float was laid in 2013 by both of them.
Capital Float can be considered as a successful financial start-up as it has given loans to around 60,000 Small and Medium enterprises. It has provided a loan of about Rs4, 500 Crore. The amount invested by Amazon will be used by Capital Float to develop proprietary underwriting algorithms and also for product designing and innovation.
Since, Amazon considers around 20% of its customer’s base from e-commerce sellers and vendors, it proves to be a giant customer for Capital Float. With this investment, Amazon makes its footprints and gains a strong grip on India’s fintech space.
Amazon is known for expanding its base and is always active in seeking such opportunities to grab more and more customers. It has invested in multiple start-ups and other ventures too have a stronger customer base across the globe. Earlier there were talks that Amazon was planning to invest in ‘Acko’ an online insurance based start-up.
Capital Float’s CEO Mr. Hinduja said “Capital Float is always looking for such opportunities. We have been associated with Amazon with quite some time now and are happy to help them providing them with financial sellers from marketplace.” He further added that this equity round does not depends on their business relationship.
He continued further by saying, “We have already crossed Rs1, 200 crore in the complete outstanding loan portfolio by adding many new products in just 6 months”. The second CEO of the company Rishyasringa said, “Capital Float will now concentrate in improving and enhancing the customer’s experience by investing more in the newer technology.”
Mr Amit Agarwal who is the Country Manager and Senior Vice President in Amazon India stated, “The Credit sector in India is not very well developed and is highly under-entered. Capital Float is one such company which is brings in the appropriate sort of credit solutions the underserved and casually served sections of SMEs. Capital Float also understands the SMEs understands their maximum potential and provides solutions accordingly. The organization is all around situated for the advanced digital era age with its solid innovation and information driven way to deal with credits and loans."