Fintech startup Capital Float has raised $50 million in an equity funding round led by Lightrock India. Cred founder Kunal Shah, Amrish Rau, CEO of Pine Labs and new investors like David Velez, Founder of Nubank also invested in the startup’s latest round.

Capital Float said it will use the funds to scale its BNPL platform and expand its partner ecosystem.

“By solving for affordability as well as convenience, in a fully-regulated format, we believe that our BNPL approach can responsibly expand access to credit to over 100 million customers who are starting to transact online,” said Capital Float’s co-founders Sashank Rishyasringa and Gaurav Hinduja.

Existing investors like Ribbit capital, Dinesh Hinduja family office, Sequoia Capital India, and Creation Investments Capital Management also participated in the round.

Capital Float was founded in 2013 and is the trade name for Capfloat Financial Services Private Limited, a non-banking finance company (NBFC) registered with the Reserve Bank of India.

The startup has been pushing into BNPL over the past couple of years. It has 2.5 million customers using its platform, and over Rs 2,000 crore-worth online purchases on an annual basis.

It has partnered with platforms like MakeMyTrip, boat Lifestyle, Amazon and Unacademy to help buyers checkout using the BNPL option.

“We are now financing two million purchases every month across 14,000 pin codes while maintaining NPAs below 1.5 per cent,” the co-founders said.

“Capital Float has solved the unique triumvirate of customer experience, risk management, and merchant partnerships that lies at the heart of unlocking the BNPL opportunity in India,” said Saleem Asaria, Partner at Lightrock India.

“In addition to its strong technology platform, it has built a sophisticated underwriting and collections capability, a; long with an ethical lending playbook, that makes the model very compelling,” he added.

Till now it has raised over $110 million in equity funding from investors like Sequoia Capital, Craetion Investments Capital Management LLC, Amazon, SAIF Partners, Aspada Investments and Ribbit Capital.