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MUMBAI: Capital Float, a digital lending platform, on Tuesday said it has raised $50 million in equity funding led by Lightrock India.

Existing investors Sequoia Capital India, Ribbit Capital, Creation Investments and Dinesh Hinduja family office also participated in the round, along with new investors David Vélez, founder of Nubank; Kunal Shah, founder of Cred; and Amrish Rau, chief executive of Pine Labs.

The funds raised will be used to strengthen and scale Capital Float’s buy-now-pay-later (BNPL) platform and expand its partner ecosystem, it said.

Capital Float said it has witnessed rapid growth over the past year, with 2.5 million customers now using its product to finance over Rs2,000 crore of online purchases annually. It has partnered with leading platforms such as Amazon, MakeMyTrip, Unacademy, and BoAt to help consumers finance purchases across e-commerce, travel, edtech, and healthcare and recently tied up with Razorpay to expand BNPL to over 100,000 merchants across the country.

“We are now financing 2 million purchases every month across 14,000 pin codes, while maintaining NPAs below 1.5%. This positions us the market leader in BNPL in India today," said co-founders Sashank Rishyasringa and Gaurav Hinduja in a joint statement.

Saleem Asaria, partner at Lightrock India, said, Capital Float has solved the unique triumvirate of customer experience, risk management, and merchant partnerships that lies at the heart of unlocking the BNPL opportunity in India.

“In addition to its strong technology platform, it has built a sophisticated underwriting and collections capability, along with an ethical lending playbook, that makes the model very compelling. We have also been consistently impressed with the tenacity and execution focus of the team through a full credit cycle," said Asaria.

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