Tata Capital has entered into a partnership with Capital Float to provide financial aid to the under-served Small and Medium Entreprises (SMEs) in India.
Tata Capital will co-lend on Capital Float online platform, where both the companies will jointly offer ‘Pay Later’ products to SMEs.
This product will offer up to 50 lakhs of the credit limit for a period of one year. The uniqueness of this product is that the person can make several drawdowns within the approval limit, which is reinstated from time to time upon repayment by the borrower.
“We believe new age Fintech companies and established financial institutions need not compete but can collaborate to widen the financing options available for SMEs. By co-lending with Tata Capital, we can leverage their balance sheet, while they can diversify their portfolio by lending to newer sets of SMEs,” said Sashank Rishyasringa, Co-Founder, Capital Float to the ET.
In August this year, Bengaluru-based Digital lending startup Capital Float had raised Rs 293 crore in its series C round led by Silicon Valley-based Ribbit Capital. The fund is being used to increase its geographic footprints, improve customer experience and launch a new set of innovation credit products of SME’s across India.
Earlier this year, the company had also raised Rs 15 crore from Mahindra and Mahindra financial Services allotting non-convertable debentures (NCDs) and Rs 17 crore from IFMR Capital finance through NCDs.
Tata Capital invested in online lending platform Lendingkart in August this year. Tata Capital also manages a sector-agnostic venture capital fund, Tata Capital Innovations Fund. The fund invests in the range of $2-10 million in early-stage companies offering technology-based solutions for Indian as well as global markets.
Sarosh Amaria, COO, Commercial Finance at Tata Capital said that Small and Medium Enterprises are the significant part of our economy, which contributes about 38% in the GDP of our country. Our collaboration with the Capital Float is another step towards making our position strong.
Tata Capital is a private Indian multinational conglomerate that was founded in the year 1868 by Jamshedji Tata.