Hyderabad-based NowFloats, which helps local businesses get online, has raised Rs 25.39 crore debt round from existing investors Iron Pillar, On Mauritius ( subsidiary of Omidyar Network), IIFL (Seed Ventures Fund I & Cash Opportunities Fund) including a new investor Wenlyn Global Group.
The entire amount came in the form of Compulsory Convertible Debenture (CCD), reveals RoC filings accessed by Entrackr. It’s a kind of debenture in which the whole value of it must be converted into equity by a specified time.
While Iron Pillar infused about Rs 17 crore since October 2018 across three rounds, ON Mauritius poured in Rs 5.4 crore. IIFL Seed Venture Rs 1.6 crore. In 2019 alone, the company raised about Rs 14 crore worth CCD from Iron Pillar and ON Mauritius and WGG International.
Almost a year ago, the firm had raised Rs 14.36 crore in a bridge round from existing investors. At that time, it also secured a loan of Rs 5 crore from Blacksoil Capital.
In early 2017, NowFloats raked in $10 million in a Series B round.
For the uninitiated, NowFloats has three flagship products, Dictate, WildFire, and YourApp. This enables local businesses to get an online presence by creating local content, managing and updating the online presence of its customers through a friendly interface.
Currently, it serves seven verticals including coaching and institute, doctors and clinics, Manufacturing, hotels, and salons & spas.
On the financial front, NowFloats has improved its performance in FY18. Registering a jump of 80.5 per cent, the revenue of the firm stood at Rs 18.73 crore in FY18. Meanwhile, losses also increased by 51.1 per cent to Rs 47.49 crore.
This essentially outlines that NowFloats lost Rs 3.5 to make a rupee. From anywhere, it’s not a good metrics for a seven years old B2B company. It competes with a slew of platforms such as KartRocket, Zepo and Infibeam-owned Buildabazaar amongst several others.
Hat tip: paper.vc