Capital Float raises first international debt line of Rs 48 cr.

Leading digital lender Capital Float on Friday announced raising debt of Rs. 48 crores from the Netherlands-based asset management company, Triodos Investment Management (Triodos IM).

The latter is a wholly-owned subsidiary of Triodos Bank, one of the world's leading sustainable banks, and manages EUR 3.3 billion in AUM.

This takes Capital Float's total debt raise to USD 130 million ( Rs 840 crores).

The company has raised USD 107 million (Rs 695 crores) in equity thus far.

Triodos IM is the first international investment management company to invest in debt at Capital Float through its investment funds Triodos Fair Share Fund and Triodos Microfinance Fund.

Through this collaboration, Triodos IM intends to increase its strategic focus on SME lending in India.

Capital Float will leverage the funds from the debt raise for the purpose of onward lending, as the company continues adding to its existing AUM of over Rs 1200 crores.

"This collaboration with Triodos IM indicates Capital Float's ever-growing reputation in the international financial circles. Investments like these will help put digital lending in India in the international spotlight. With this fresh injection of funds, we will strengthen our focus on expanding our MSME borrower segments," said Gaurav Hinduja and Sashank Rishyasringa, co-founders of Capital Float, in a joint statement.

Aditya Mohan, Senior Investment Officer said, "We are pleased to partner with Capital Float and are enthused by their approach of using technology as an enabler for collaboration in financial services. We look forward to contributing to a digital eco-system which can make credit accessible and affordable to MSMEs".

Northern Arc Capital performed a crucial role in facilitating the debt raise between Capital Float and Triodos IM.

"We are excited to have played a critical role in an important transaction. The investment by Triodos IM in Capital Float is a great demonstration of our commitment to back clients in every way possible along their growth path," said Dr. Kshama Fernandes - MD and CEO Northern Arc Capital.