Poonawalla Finance, a subsidiary of Cyrus Poonawalla Group, has joined hands with Capital Float, India’s leading fintech lender, to offer working capital financing worth Rs 500 crores in the next one year to Micro, Small & Medium Enterprises (MSMEs) across India.
The two companies will be jointly lending on Capital Float’s co-origination model to deliver last-mile credit to MSMEs across the country.
Due to this partnership, MSMEs will be able to apply for these loans online and get clearance on in-principle approval just within four hours. This is so far the quickest turnaround time in the industry, powered by Capital Float’s new-age technology and credit underwriting platform integrated with Poonawalla’s systems.
Poonawalla Finance which began its operations in April 2019 has already crossed Rs1500 crores in AUM, is one of most well capitalized NBFCs in the country.
Sashank Rishyasringa, Co-Founder, Capital Float, said, “Capital Float is the pioneer of digital lending in India with proven capabilities and experience in MSME financing. We recently crossed $1 bn in lifetime disbursals and are heavily motivated to foster the growth of small businesses at a grassroots level. In this regard, we are delighted to partner with Poonawalla Finance and add impetus to our lending initiative for MSMEs. We are deeply impressed by Poonawalla Finance’s speed in business execution and the significant focus on technology to innovatively solve problems. The agility of the companies involved helped take the partnership live in record time.”
Abhay Bhutada, Managing Director & CEO, Poonawalla Finance, said, “We are very excited about our partnership with Capital Float. They paved the way for digital lending in India and have demonstrated maturity and resilience over the years. Capital Float is led by strong and professional promoters with significant experience, a key determinant of their success. Poonawalla Finance believes in relationship-driven partnerships being integral to jointly achieving mutual objectives and growth in a tightly contested market. Through our collaboration with Capital Float, we will expand our reach beyond the metropolitan cities to tier 2-3 towns of India.”
The two NBFCs will start with co-originating on MSME loans, but are expected to broaden the engagement to consumer financing as well. Poonawalla Finance and Capital Float are targeting to release over Rs 500 crores over the next 12 months, with a monthly run rate of Rs 50 crores.