Gaurav Hinduja,MD & co-founder, Capital Float
Gaurav Hinduja,MD & co-founder, Capital Float

Capital Float’s click moment: Point-of-sale financing for consumers

We learned that we could leverage our existing merchant acquisition expertise, collaboration with Indiastack to expand into the avenue of consumer financing

Capital Float ushered the first wave of digital financing in India in 2013. As a leading digital lender in the country, we identified data-rich, credit-poor SMEs as the ideal segment to finance. Since then, we have been customizing working capital solutions to a wide range of micro-entrepreneurs and enterprises.

After achieving significant market leadership in the fintech lending space for SMEs over four years, we forayed into B2B2C-based consumer finance in mid-2017.

Several partners from our SME lending vertical had informed us of an obtrusive challenge faced by their customers while availing products and services—quick and easy access to point-of-sale finance. This was also hindering the partners’ ability to convert prospects into buyers. We found their problem statement intriguing, proceeded to roll-up our sleeves and got to work.

One year later, and after running several pilots across 75 cities, we knew that we had found the missing piece of the puzzle. Through our analysis, we learned that we could leverage our existing merchant acquisition expertise, collaboration with Indiastack and digital lending infrastructure to expand into the avenue of consumer financing.

We built an app-based, paperless credit product, which would ensure that the consumer had a seamless borrowing experience.

Consumers can apply for the loan at the point-of-sale within three minutes and receive funds instantly. We also factored affordability into the solution by offering no-cost-EMI option to the borrower.

The offering has substantially increased partner sales by 20-30% and also caters to 30-40% of consumers who are new-to-credit. We’re serving 15,000 new customers every month, who are now able to achieve their aspirations by amortizing large expenses for services availed.

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