Digital lending platform to SMEs in India, Capital Float has reached a phenomenal milestone of disbursing loans worth Rs. 1,000 crores to over 7,000 customers. Banking on government push for digital transaction and its robust platform, the company has disbursed this amount in ten months, from April 2016 to January 2017. Company expects to disburse loans worth Rs. 5,000 crores and fund 20,000 customers in FY 2017-18.
“We have seen a fantastic response to our products with 700% growth in customers and 500% growth in disbursal value in 2016, as compared to 2015,” said Sashank Rishyasringa, Co-Founder and MD, Capital Float. “We have leveraged innovative technology along with data sciences to make loan disbursal hassle free for customers, leading to 85% of them returning for fresh loans.”
New product offerings such as Pay Later and Merchant Cash Advance accounted for 35% of the loans disbursed. Unsecured Business Loans and Vehicle Finance witnessed 300% and 85% growth respectively.
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About 50% of the retail loans originated on Capital Float’s online lending marketplace, which has blue-chip banking institutions (like IDFC) co-lending on the platform. Despite achieving this dynamic acceleration, Capital Float has managed to keep its NPAs under 1%, thanks to a deep understanding of the SME segment and nuanced underwriting based on over 2,000 variables.
“The digital footprint of SMEs is increasing with greater adoption of Aadhaar, UPI and eKYC, thus creating alternative digital data sources. A prime example is the 100% paperless loan process we have developed with India Stack – it is India’s fastest loan to SMEs, with the money being disbursed in just 90 seconds. Equipped with the insights derived from underwriting SMEs across sectors, we continue to create customized working capital solutions for high potential SMEs, while ensuring that we deliver the best in segment borrowing experience to our customers,” said Gaurav Hinduja, Co-Founder and MD, Capital Float.
Another contributor to the company’s success is strategic partnerships with ecosystem leaders in various segments, including Amazon, PayTM and Alibaba in the e-commerce space; Uber and Ola in the taxi segment; VIA and Yatra in the travel segment; Mswipe and ICICI Merchant Services in the POS segment and Payworld in the payment remittances space. These partnerships have enabled Capital Float to widen reach and deepen impact across segments.