Published on : Dec 18, 2017
Amazon, the online retail giant, is looking to strengthen its presence in the financial technology space. The company is in discussion with a digital lending startup, named Capital Float, to invest in it. Capital Float, an Indian lending company, which has focused on small-scale businesses so far, is all set to initiate consumer financing on the platform that Amazon provides, a source close to the company stated. The deal size is yet to be revealed, however, it is expected that Amazon is not likely to cut a big cheque.
Market predictions indicate that the leading online retailer may invest around US$5 to 10 mn as an extension of the capital raised in the recent round by Capital Float; however, this could not be confirmed independently. Both Capital Float and Amazon have declined to comment on this matter. If the deal is closed, it will add the fintech space to portfolio of investments of Amazon India apart from BankBazaar, an online financial services marketplace, and Qwikcilver, a gifting and loyalty point enterprise. Capital Float is also building a business of consumer-focused payments under Amazon Pay in order to take on Paytm, supported by Alibaba and Phonepe, backed by Flipkart.
According to a founder member of Capital Float, “the corporate development team of Amazon is currently very active and they like fintech.” Recently, the lending company raised US$45 mn in a Series-C funding round, which was led by Ribbit Capital, a Silicon Valley-based company.