Months after reports surfaced that Amazon was considering an investment in the company, alternative lending platform Capital Float revealed it secured $22 million in funding led by the eCommerce giant.
Reports in TechCrunch on Monday (April 23) said India’s Capital Float, now the nation’s largest marketplace lender, extended its Series C funding round with Amazon’s $22 million investment, adding to the previous $45 million placed in the company last August.
Amazon’s investment came in the form of equity, and Capital Float told the publication that it has now raised $67 million in total equity over the last year, as well as $80 million in debt from banks and other investors. The funding combines to finance small business loans issued through its platform.
Past investors in the company include SAIF Partners, Ribbit Capital and Sequoia India. Last December, reports in The Economic Times said unnamed sources revealed Amazon was exploring a possible investment in the alternative lending company, though a spokesperson for Capital Float said the rumors were merely “speculative.”
Amazon is enhancing its own small business lending capabilities, revealing last year it has given more than $1 billion to business borrowers using the Amazon platform to sell goods.
According to reports, Capital Float aims to add 300,000 new customers onto its platform with the new investment. The company also has a goal of originating more than $800 million in loans this year.
“We’re excited to work with Capital Float and invest alongside other investors,” said Amazon India Country Manager Amit Agarwal in a statement. “We are highly impressed with what [Co-Founders] Gaurav [Hinduja] and Shashank [Rishyasringa] have built, and we back missionary entrepreneurs and management teams.”
“Credit in India is highly underpenetrated, and Capital Float is bringing the right kind of credit solutions to the underserved and informally served segments of SMEs to help realize their full potential,” Agarwal added.
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