Venture capital may be drying up for some alternative lenders, but small business lending platform Capital Float is continuing its funding spree with an additional $45 million.
The India-based company announced the Series C investment on Monday (Aug. 21) led by Ribbit Capital, based in Silicon Valley. SAIF Partners, Sequoia India and Creation Investments also participated, according to reports by Inc42.
Earlier this year, Capital Float announced a much smaller funding round to the tune of $2.3 million, led by Mahindra and Mahindra Financial Services. The latest funding is also coupled with $67 million in new debt lines, said Capital Float, raised over the course of a year from various backers including RBL Bank and IDFC Bank.
“We’ve been impressed by the Capital Float team as the company has achieved remarkable growth by delivering innovative products to small businesses and providing attractive returns to investors on the platform,” said Ribbit Capital partner Nick Shalek in a news statement. “With this financing, Capital Float is further cementing its lead as the top technology-enabled NBFC in India and we are thrilled to support the company’s journey.”
Capital Float expressed similar sentiments.
“We are growing at an exciting pace, currently originating over INR 200 Cr in disbursals every month,” the company said in a statement. “Over the past year alone, we have disbursed loans of INR 2,500 Cr to 12,000-plus customers across 300 cities.”
Funding by the alternative lender comes as overall interest in the industry has waned among venture capitalists.
Recent CNBC reports highlighted the challenge alternative lenders face when convincing investors to back their business, with BlueVine CEO Eyal Lifshitz noting the investment landscape has changed in the last three years as backers focus on the “viability of the overall lending model.”
According to venture capital database CB Insights’ data, alternative lenders have seen a five-year low of venture capital funding rounds. The industry saw just $2 billion in funding this past year, compared to $4.4 billion in 2015.