India-based SME lender Capital Float has added a bit of funding to its books thanks to a $2.3 million raise announced Monday (April 10).
The company said the funds were provided by Mahindra and Mahindra Financial Services and raised against non-convertible debentures (NCD). According to Capital Float cofounder Sashank Rishyasringa, the deal brings the total raised for Capital Float in 2016–2017 to $9.2 million through this route.
“The NCD raise was meant for strengthening Capital Float’s lending books, and the company saw NDCs as a good alternative for fundraising, in addition to raising capital via term loans from banks and other financial institutions,” the executive told reporters.
The company has secured significant venture capital, too. Last year the firm revealed it closed a $25 million Series B funding round led by Capital Management with participation from SAIF Partners, Sequoia Capital and Aspada Ventures. The total VC raised by Capital Float is about $42 million, with the firm valued at more than $100 million at the time of its latest funding round, which closed last May.
More recently, in February, the company raised $2.5 million from IFMR Capital Finance, also in a deal to raise funds against NCDs, reports said.
India has a strong alternative SME finance ecosystem, which has recently been boosted by demonetization and an effort to pull more individuals and small businesses into the financial services space. It’s an attractive market for international players, too; last year Biz2Credit revealed plans to expand into India and tap into its 29 million small businesses.