Deal Street: Amazon India Backs Digital Lending Startup Capital Float 

Seven Indian startups together raised just under Rs 300 crore from angel, seed or venture capital funding last week, as compared with Rs 512 crore raised in the the week prior.

E-commerce giant Amazon backed a Bengaluru-based lending startup as it looks to strengthen its consumer-focused payments business in the country.

Capital Float Raises $22 Million

Amazon's India arm invested Rs 144 crore (around $22 million) in the digital lending firm Capital Float.

In a media statement, the Bengaluru-based firm said it will use the funds to strengthen its end-to-end digital loan origination system and to design innovative credit solutions for customers. With the investment from Amazon, it is looking to add 300,000 customers and advance over Rs 5,000 crore in loans this year, Capital Float said.

With this latest round, the company has now raised $107 million (around Rs 711 crore) since its inception. It had last raised $45 million (around Rs 300 crore) in August 2017 from Palo Alto-based Ribbit Capital and other existing investors.

Founded in 2013, Capital Float is a non-banking finance company registered with the Reserve Bank of India. Its customers include small and big merchants selling on e-commerce platforms like Amazon and Flipkart, retailers and wholesalers, restaurants, and Kirana stores (family-owned stores) among others.

“Credit in India is highly under-penetrated, and Capital Float is bringing the right kind of credit solutions to the under-served and informally served segments of SMEs to help realize their full potential,” Amit Agarwal, senior vice president and country manager at Amazon India, said.

Capital Float said it currently has about 50,000 customers across 300 cities in India and its average loan-ticket size is between Rs 10-12 lakh.

Digital Media Firm POPxo Raises $5.5 Million

Fashion and lifestyle content portal POPxo.com raised Rs 37 crore ($5.52 million) in funding led by South Korea-based Neoplux Technology Fund and Chinese consumer electronics company Oppo.

Existing investors such as IDG Ventures India, Kalaari Capital, GREE Ventures (Japan) and Summit Media (Philippines) also participated in the round, the company said in a statement.

“With this investment round, we are looking to consolidate commerce as a strong revenue stream,” said Priyanka Gill, founder and chief executive officer of POPxo, said. With the latest investment round, the firm is also looking to strengthen its vernacular offering and double down on its investment in video, Gill added.

Founded in 2014, POPxo targets women in the 18-34 age group across India and has 14.3 million monthly users, according to information on its website.

PayMe India Raises Funds From Singapore-Based Angel Investors

Financial technology startup PayMe India raised Rs 13 crore ($2 million) in angel funding from several Singapore and India-based angel investors.

Pramod Singhal, Nokia's chief operating officer; and Shashank Sharma, a regional executive at a multinational firm; were the lead investors from Singapore, the company said in a statement. Indian investors such as Alok Garodia, chief financial officer of Lenovo; Rishi Bhasin, associate director at investment firm Darashaw & Co; and Rajiv Punater, director recruitment solutions firm Bayside Group; also participated.

The Noida-based firm said it will use the funds to boost both capacity and market expansion.

Founded in 2016, the firm provides lending support to salaried employees on short- and long-term basis.

Others

Online beauty marketplace Nykaa raised Rs 75 crore ($11.32 million) at a valuation of Rs 3,000 crore, The Economic Times reported. The round was led by existing investors including Sunil Munjal's family office, Harsh Mariwala's family office, Dalip Pathak, a special limited partner at Warburg Pincus, along with other existing and new high net worth individuals, the report added.

After-sales car service provider Pitstop raised Rs 10 crore ($1.6 million) from existing investors led by Singapore-based Goldbell Group & Blume Ventures, according to a media statement.

Mumbai-based robotics and consumer electronics company Emotix, raised Rs 13 crore ($2 million) in a funding round led by venture capital firms IDG Ventures India and YourNest, the company said in a statement.

Noida-based train travel startup RailYatri raised an undisclosed sum from Omidyar Network, a company statement said. Existing investors including Infosys co-Founder Nandan Nilekani, early-stage venture capital firm Blume Ventures, and homegrown venture capital fund Helion Venture Partners also participated in the round.