Warburg Pincus, a private equity firm, which recently invested in Rivigo’s $75 million Series C round, is now eyeing another Indian startup. As per the report from LiveMint, the firm is in advance talks with Capital Float to invest in its upcoming funding round.
In Capital Float, the PE firm is reportedly looking to invest around $75 million. However, nothing has been finalized yet. A person aware of the matter said to Mint:
Currently, Warburg is looking to invest up to $75 million in Series C funding in Capital Float although the final figure as well as the terms of investment could change as the discussions are yet to conclude.
It must be noted that Warburg Pincus has bought close to 65% in Future Capital Holdings (renamed as Capital First), is a listed non-banking financial company. The firm’s move to buy significant stake in Capital Float is part of a strategy to diversify the company’s loan book.
In an email response to LiveMint, Capital Float said:
We are currently focused on growing the business, and are not actively fund-raising at this time. Our Series B funds raised earlier this year are being deployed in growing loan originations, investing in our technology platform, and expanding our footprint across the country.
Capital Float was founded in the year 2013 by Sashank Rishyasringa and Gaurav Hinduja. Since its inception, the company claims to have disbursed loans amounting to over Rs 400 crore.
The online platform provides unsecured loans to start-ups, business-to-business (B2B) firms, small manufacturers and e-commerce merchants through its own books.
In order to expand its reach, the startup has partnered with several other startups such as Snapdeal, ShopClues, Paytm and Uber among others. With the partnership, it offers loan to merchants or users of those platform.
Earlier this year, in May, the startup had secured $25 million in a series B round. The round was led by Creation Investments Capital Management LLC, along with Sequoia Capital, Aspada and SAIF Partners.
Prior to that, it raised $13 million in Series A round in February 2015. In 2014, the company had raised $2 million and $1 million in seed round. The total amount raised by the company so far stands at $41 million.