Intro to the company

• Founders - A company based out of Bangalore, founded in 2013 by Shashank Rishyasringa and Gaurav Hinduija
• What it Does - It provides working capital to small and medium sized enterprises(SME’s) in India. Offers flexible and short term loans whether it be for inventory purchase, service new orders or optimizing cash cycles.
• Aim/ Vision - Company leverages technology to deliver innovative credit products as a financing solution to vast sections especially those undeserved by large financial firms, and to SMEs belonging to Education, Wellness, Healthcare, Lifestyle, Travel etc.
• Talking Numbers -
  • Total funding received till date: $100 million
  • crossed 2000 crores worth of financing contributed only by BNPL model
  • also acquired a personal finance management app called ‘WALNUT’ with 20 lakh lifetime active customers.

Tech Deployed

• Artificial Intelligence - Capital Float extensively deploys AI and ML models to determine credit risk across all of its products, its small ticket loans are fully automated and built using AI. In the Walnut personal finance management, functions are such algorithmically designed to generate financial insights which helps them to offer customized credit facility to its customers.
• Machine Learning - Float uses ML in its collection stack to optimize cost by developing an in-house industry’s 1st Early Warning System (EWS). ML also assists in Digital Marketing.
• Application Programming Interface (API) - Most of Captain Float’s solutions are built on a sophisticated API platform, so it can quickly integrate with its partner systems. This allows the company to showcase the power of data from various sources to accelerate the process and hence reduces wait time for the customers.
• Lending Stack - Company has built its very own lending stack which includes Loan Management System(LMS), Loan Management System (LOS) and Decision Engine. These practices adds up to higher efficiency and quicker decision making practices.
• Data Analytics - Currently the company is using data analytics just to gather customers’ feedback digitally by building monitoring tools around it.
• Data Science - It leverages data science to secure low human involvement processes. Data science is deployed to provide insights such as risk analysis, risk modelling, fraud detection as well as presenting personalized offers for customer acquisition.
• Summarizing all, it is the technology that has enabled automation of several such processes such as identity verification, alternate data sourcing, document verification or underwriting.\

Minimum Viable Product (MVP)

• In its initial stages, founders along with some enthusiasts went into meeting 500+ SMEs, and started by sourcing, underwriting and issuing 1st 100 loans themselves.
• They adopted ‘slow & grow’ approach to test their early credit models. With time they collaborated with banks and HNI’s for optimizing their cash cycles and sourcing for financing.

Differentiator

• Wide product Portfolios - Many fintech based lending companies are vertical specialists, however Capital Float is among the few digital financers in the country that specialize in SME as well as consumer financing.
• Scalable Technology - From the beginning the company focused on building robust tech and infrastructure to help it scale without friction. Today it has reached a point that it can easily process 100s of applications for online checkout of finance products in milliseconds.
• Unique Underwriting & Efficient Collections - After disbursing such a large number of loans since past 5 years, it has reached a point where in it can offer a fully automated loan provision using advanced algorithmic data and underwriting models.
• Innovative fund sourcing - The firm has funding models comprising of multiple banks, family offices, collaboration with HNIs, which help it to source funds from multiple channels without creating dependence on a specific channel.
• Instant Onboarding - They acquire a customer with a very easy 2 step onboarding process, unlike others where loan provision is quite cumbersome. What consumer need to do is to enter Aadhar and PAN number for processing instant loans. Such a quick loan lending feature is one of the USP of Capital Float.
• Customer Acquisition - It partners with large MNC’s like Amazon e-commerce, Make My Trip and many others. They catch their customers when they shop online on these large trusted websites.