Capital Float Forays into Consumer Finance

Capital Float unveiled its app-based Consumer Finance solution. By using this paperless product, partners can offer Capital Float’s instant, no-cost EMI option to consumers at the point of sale. The company’s tech-driven algorithms underwrite the consumer in real-time, ensuring instant approvals.

“We have carefully built this product over the last year and are fully operational across 75 cities in India. We are witnessing exponential growth in terms of disbursals and on an average, are adding 15,000 new consumers every month, aiming to cross a customer base of 200,000 by the end of this year through this financing solution.

"We have already partnered with over 250 companies across verticals such as education, vocational training, wellness, elective healthcare, home furnishings, electrical equipment, lifestyle, travel, fitness and consumer durables. We’re witnessing tremendous growth by adding 25-30 new partners every month,” said Sashank Rishyasringa, co-founder, Capital Float. “Our partners too, have experienced a substantial increase in sales, up to 40% in certain cases, along with a substantial increase in average ticket size of sale since the introduction of our products,” he added.

The Consumer Finance solution operates on a digital model, wherein the application process is completed in under three minutes. Consumers needn’t swipe their credit cards or pay upfront. Instead, they can opt for the convenience of paying via EMI by applying for the loan during purchase.

Gaurav Hinduja, co-founder, Capital Float said, “The new-age Indian consumer is curious, informed and accepting of new financial products and services, which in turn is boosting the consumer lending sector, the potential of which is estimated to be between $10 Bn-$12 Bn. The app-based, paperless process is designed to provide the highest degree of convenience to the partner and consumer while transacting at the point of sale.

"Furthermore, the uniqueness of our products extends to verticals wherein consumers are typically under-served. For instance, by using our product, a customer can avail of elective healthcare facilities like weight loss, hair transplant or IVF which are normally not covered under regular insurance products. We’re currently disbursing a loan every five minutes with offerings across 1300 outlets. Given the potential of the market and our offering, we are confident of doubling our growth this year in terms of customer acquisition and point of sales.”

Through its Consumer Finance solution, Capital Float offers small ticket size loans to consumers aged between 23 – 60, with an average loan value of INR 50,000 and tenure of 6-12 months for repayment. The loans can be availed for a variety of uses including paying tuition fees, financing travel packages, dental treatment, fitness packages, buying electronic appliances and computers, etc.