Capital Float, the largest digital lending platform in India, announced the launch of Proprietor Loans that facilitate financial inclusion and business growth for micro-entrepreneurs in India. The product targets the small retailer segment like salons, medical stores, kirana, mobile phone retailers, small restaurants, etc. who face challenges in obtaining loans for business expansion from traditional lenders. Proprietor Loans aims to reduce documentation and the time taken to avail a loan in comparison to traditional banking services.
“We ran extensive multi city pilots and are glad to see the end result. Our tradition of being pioneers of digital lending in India continues, as we’ve created an entirely paperless process through the app and achieved low unit economics to penetrate a vast market that was untapped. We’ve ensured that the customer experience remains top notch, as the borrower receives the loan in minutes by providing their AADHAAR number. We’re currently adding 2,000 borrowers a month and expect to reach 5000 borrowers per month by March 2018,” said Sashank Rishyasringa, co-founder, Capital Float.
There are above 5 million kirana stores in India which are run by micro-entrepreneurs with business ambitions such as increasing product lines, diversification, digitization or opening more stores. However, they don’t have quick and easy access to funds. Capital Float will assist the micro-entrepreneurs by providing loans between ₹25,000 – ₹5 lakhs with convenient repayment options ranging from three to six months. Additionally, Capital Float will also provide loan enhancements, top-ups and renewals based on the business performance of the borrower. Capital Float has partnered with various ecosystem leaders such as Amazon Business, Metro Cash & Carry, Storeking, Payworld and PayTM. Operations are currently live in all the metros, while the team is focussing on taking the product to Ahmedabad, Surat, Chandigarh, Bhopal, Indore and Vizag.
“Getting loans is always a challenge for small retailers in India due to complex documentation, time-consuming procedures and traditional approach to underwriting. Through Proprietor Loans, we aim to support these micro-entrepreneurs to achieve their business aspirations. Our loan product will help our borrowers grow their business, while our partners experience larger volumes of transactions on their respective platforms. We’re currently offering term loans and lines of credit to our borrowers,” added Gaurav Hinduja, co-founder, Capital Float.
“Capital Float’s robust and advanced technology that provides Kiranas and small business owners approval and access to credit in a matter of seconds is revolutionary. I’m confident the digitizing of the fintech and lending sector through the approach of Capital Float will transform the landscape of financing. Small traders and business owners in the last year have really embraced their smartphone effectively and the seamless user experience of Capital Float has provided an enhanced customer experience through the app.” – Sumat Chopra, Director – Value Creation at Metro AG
“By launching the Proprietor Loan product, Capital Float continues to be at the forefront of financial innovation in India. With this credit solution, they will be catering to a vast market of under-served micro-entrepreneurs in the country. Through our collaboration with Capital Float, we expect our customers to experience exponential growth on our platform, consequently increasing the volume of transactions on Payworld.”- Praveen Dhabhai, COO, Payworld.
About Capital Float
Capital Float is the pioneer of digital lending in India. With its technological expertise and Big Data Analytics competencies, the company has significantly simplified the process of applying for and disbursing loans. Capital Float frequently evaluates and services segments that are high potential, but traditionally underserved by financial institutions.
Founded in 2013, Capital Float is the trade name for Zen Lefin Private Limited, a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India. The company has partnered with ecosystems across various verticals such as e-commerce (Flipkart, PayTM, Shopclues, eBay, Alibaba, Amazon, etc.), travel and hospitality (VIA and Yatra), retail (Mswipe, Pine Labs, Bijlipay, ICICI Merchant Services), digital remittances (Payworld, Eko) and taxi aggregators (UBER and Ola) etc. The company has raised funding from esteemed venture capitalists like SAIF, Sequoia, Aspada and Creation Investments Capital Management, LLC. Capital Float is headquartered in Bangalore with offices in Delhi, Chennai and Mumbai.