FlexiLoans, a digital non-banking financial company (NBFC) focused on providing loans to micro, small and medium enterprises (MSMEs), has raised Rs 290 crore in a Series C round funds round.
The funding round was led by global investors including Accion, Nuveen and Fundamentum, backed by Nandan Nilekani, with participation from existing investor Maj Invest.
Unitus Capital acted as exclusive advisor on the transaction.
The Mumbai-based firm has raised over $182 million in funding in a mix of debt and equity from investors including Accion, JM Financial, Vivriti Asset Management and Nuveen, a TIAA company.
Focused on scaling operations
FlexiLoans plans to use the new funds to expand its operations, enhance its product offering and further develop its technology infrastructure.
India’s MSME sector, which contributes around 30% of the country’s GDP, remains largely underserved: less than 10% of MSMEs have access to loans from traditional financial institutions.
To address this gap, FlexiLoans plans to enhance its lending capabilities, particularly targeting Tier 2 and Tier 3 cities, where access to finance is even more limited.
FlexiLoans’ presence in the market
Founded by Deepak Jain, Manish Lunia, Ritesh Jain and Abhishek Kothari, FlexiLoans is an online lending platform that offers SMEs access to collateral-free funding. The company uses proprietary technology and risk models to assess customers and approve loans within 48 hours.
It currently offers two main products: EMI-based loans with repayment periods ranging from 12 to 36 months, and invoice financing for short-term credit needs, with repayment terms between 30 and 90 days.
FlexiLoans claims to have disbursed over Rs 7,000 crore in loans across 2,100 cities. The company operates in over 15,000 postal codes through digital channels, without physical branches, and has an annual disbursement rate of over Rs 4,000 crore, serving over 1.5 million registered users.
Subscribe to our newsletter for a daily summary of the startup ecosystem.
With the aim of expanding AUM
With current assets under management (AUM) of over Rs 2,000 crore, FlexiLoans aims to increase this figure five-fold to Rs 10,000 crore over the next three years.
In fiscal year 2024, FlexiLoans reported a 142% year-on-year increase in revenue, from Rs 108.5 crore in fiscal year 2023 to Rs 262 crore. However, despite the increase in revenue, the company saw its profits decline by 50%, with profits of Rs 3.3 crore in the same period.
“We are pleased to have raised a Series C round from global blue-chip private equity funding that aligns with our vision of empowering SMEs across India. With this capital, we will further our mission of driving financial inclusion, expand our reach and enable more underserved SME businesses to access the funding they need to grow and succeed,” said Deepak Jain.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.