The Series B financing also saw "significant participation" from existing investors like SAIF Partners, Sequoia India and Aspada, Capital Float said in a statement.
This is the third round of funding, bringing the total equity capital raised by the company to USD 42 million.
This round of growth capital will help Capital Float expand its lending footprint to over 20,000 small and medium enterprises in over 100 cities, and introduce new financial products online, it said.
Founded in 2013, Capital Float has created a proprietary technology platform to evaluate the financial health of SMEs and efficiently deliver working capital to a segment that is underserved by traditional banks, it added.
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Capital Float operates a lending marketplace with multiple large banks and non-banking finance company's (NBFCs) actively participating on its platform.
In two years, the platform has processed Rs 400 crore in loans to small businesses across over 40 cities, with 20 times growth last year.
"Today, a customer can apply from anywhere through the web or smartphone and have their credit worthiness analysed within minutes using sophisticated algorithms that draw on financial and alternative data.
"This blend of tech and data is enabling us to scale rapidly while minimising defaults and significantly lowering the cost of delivery for micro loans," Capital Float co-founders Gaurav Hinduja and Sashank Rishyasringa said.
The company's product offerings include ecommerce seller financing, term loans, receivables financing, lines of credit, and commercial vehicle loans.
Capital Float is the trade name of Zen Lefin, a registered NBFC headquartered in Bengaluru.