The new round of funding comes two months after it raised $2.5 million (Rs 17 crore) from IFMR Capital similarly, through NCDs.
NCDs are a class of preferential shares that cannot be converted to equity. In India, companies receiving NCDs in lieu of investment usually lend the money to earn interest income and get back the money within a specified time period.
The company will use the funds to strengthen its loan book, Sashank Rishyasringa, co-founder of Capital Float, told The Economic Times, which first reported the development.
E-mail queries sent to Rishyasringa and co-founder Gaurav Hinduja confirming the development remained unanswered at the time of filing this report.
With the new round, the total quantum of external funding raised by Capital Float through various means—including NCDs—comes close to roughly $45 million, based on data from VCCEdge, the data research platform of News Corp VCCircle.
Capital Float, founded in 2013 by Stanford University alumni Rishyasringa and Hinduja, lends to small businesses via a tech-led loan-origination and credit-underwriting platform. Its offerings include e-commerce seller financing, term loans, receivables financing and commercial vehicle loans.
In May last year, the company had secured $25 million (Rs 170 crore) in Series B funding led by Creation Investments Capital Management. It also counts SAIF Partners, Sequoia India and Aspada as its investors.
In February 2015, Capital Float had secured $13 million (Rs 81 crore then) in Series A funding from Sequoia Capital. Existing investors SAIF Partners and Aspada had also participated.
Fintech startups that have recently garnered investor attention include expense management company Fyle Technologies, which in February raised $400,000 (Rs. 2.67 crore) in its seed round led by early-stage venture firm Pravega Ventures.
In the same month, Mumbai-based digital payments company ItzCash Card Ltd made an undisclosed equity investment in Bangalore-based expense management firm Finly.
Like this report? Sign up for our daily newsletter to get our top reports.
