Digital lending firm Capital Float has acquired Pune-based fintech firm Walnut (Thumbworks Technologies) in a deal amounting to USD 30 million (about Rs 208.6 crore).
Walnut offers a personal finance management mobile app that helps users to automatically track spends, bank and card balances, bill payments, and split expenses within a group. It has over seven million downloads on Google Play Store.
In July 2017, Walnut had launched ‘Walnut Prime’, a small-ticket, app-based credit line for its users. It recently crossed Rs 100 crore in loans to users.
“Their approach towards leveraging technology to solve financial concerns of the common individual was particularly impressive… Walnut Prime is a product of deep interest to us, and it will essentially become a new addition to our stable of exceptional, customised credit products,” Capital Float founders Sashank Rishyasringa and Gaurav Hinduja said in a statement.
Walnut’s ‘Prime Credit Score’ takes into consideration an alternate data range that includes one’s income, purchase behaviour, earning capacity and security savings. The data range also incorporates consumption forms like e-commerce, wallet, shopping, food and bills to get an in-depth insight into the consumer’s behaviour, thereby enabling risk evaluation.
“We believe having Capital Float on our side opens up an immense set of opportunities by leveraging their strength in online lending and financial products with our innovative approach to consumer experiences,” Walnut founders Patanjali Somayaji and Amit Bhor said.
The digital lending firm has partnered with over 250 companies to offer finance to consumers availing products and services in segments such as education, vocational training, wellness, elective healthcare, home furnishings, electrical equipment, lifestyle, travel, fitness and consumer durables.