Recently, the major e-commerce players in India like Amazon and Flipkart have been looking to invest in or have tie-ups with fintech startups to enhance the services they provide to their customers. For example, if a person wants to buy a large category consumer goods like TV or refrigerator but is unable to buy it in one go/payment, there are options available both in Amazon and Flipkart to buy such products via loan and repay via EMI. The ability of the e-commerce platforms to lend loans for such large category consumer goods will be enhanced greatly if they invest in or have tie-ups with fintech startups. Read more on Investments
In an event that follows suit with this trend, the e-commerce giant, Amazon, is in talks with the Bengaluru – based fintech startup, Capital Float, to invest around US $5 to 10 million in it. The exact amount of investment, Amazon will make, is not yet known. If the talks are successful and if the investment goes through, Capital Float, which has so far focused on funding small businesses, will be all set to start consumer financing on Amazon’s platform.
This funding from Amazon could be an extension to the Series C round of funding amounting to US $ 45 million (Rs 293 crores) it secured in October 2017 from Ribbit Capital and others or it could be a new round of funding (Series D round of funding) altogether. If this funding goes through, it will improve Amazon’s footprint in the fintech sector in India.
“Amazon’s corporate development team is very active right now, and they love fintech”, the founder of Capital Float said.
Capital Float’s existing investors are SAIF Partners, Sequoia India and Creation Investments. The startup was valued at Rs. 1,150 crores after the Series C round of funding. Capital Float’s revenue for FY16-17 was Rs 53.8 crores, while its losses grew to Rs 63.5 crores according to MCA documents. Amazon’s rival, Flipkart has gone one step ahead and is even looking to sell insurance products on its platform once it gets Government bodies’ approval. All these developments just highlight how important the fintech sector is for the e-commerce players in India. Read more on Startup News
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