Capital Float Finances INR 400 Crore Of Purchases During COVID-19
The company expects to double its customer base to 2 million by the end of this fiscal year
Capital Float announced on Monday to have financed customer purchases worth INR 400 crore since March 2020 and has witnessed a 350 per cent growth in its ‘buy-now-pay-later’ (BNPL) customer base in a span of seven months when compared to FY20, as an increasing number of Indians found value in instant online credit.
The company has tied up with e-commerce and many travel players to offer its instant online credit to millions of consumers, pan-India.
Earlier this month, the digital financial services company has attained a signpost of serving over one million customers. Driven by a 100 per cent jump in BNPL customer numbers during the weeks of Indian e-commerce festive sales and their current trajectory is 200,000 new customers per month.
“BNPL as a product has proven to be a standout success among millennials who constitute a substantial part of digital India. We are offering this product across 8,000 PIN codes in the country. Over 70 per cent of our customers are in the 25-40 years of age range and 20 per cent are new to credit. These customers are looking for digital-first financial products to make everyday goods and services more accessible, convenient and affordable,” said Capital Float co-founder Gaurav Hinduja, in a statement.
“With the shift to e-commerce, online bill payments, and e-groceries since COVID, our BNPL product has become increasingly relevant to customers in facilitating recurring and larger ticket purchases,” Hinduja added.
Since the COVID-19 pandemic, the e-commerce sector has grown rapidly. Capital Float has seen a two-times increase in online spending among its own customer base in September compared to pre-pandemic levels. As a consequence, it has also witnessed a huge increase in demand for small-ticket digital credit facilities, particularly for online purchases.
Founded in 2013, the company has raised funding from marquee investors such as Elevation Capital (formerly SAIF Partners), Sequoia India, LGT Lightstone Aspada, Creation Investments Capital Management LLC, Ribbit Capital, and Amazon.