FlexiLoans, a digital lending platform focused on providing loans to micro, small, and medium enterprises (MSMEs), has successfully raised Rs 290 crore in its Series C funding round. The round was led by global investors including Accion, Nuveen, and Nandan Nilekani-backed Fundamentum, with participation from existing investor Maj Invest. Unitus Capital served as the exclusive advisor for this transaction.
Scaling Operations for MSMEs
FlexiLoans plans to use the newly raised funds to scale its operations, enhance its product offerings, and further develop its technological infrastructure. Despite MSMEs contributing about 30% to India’s GDP, less than 10% of them have access to loans from traditional financial institutions. This funding will help FlexiLoans bridge that gap by expanding its lending services, particularly in tier-2 and tier-3 cities, where access to finance is even more limited.
Digital Lending Platform
Founded by Deepak Jain, Manish Lunia, Ritesh Jain, and Abhishek Kothari, FlexiLoans offers MSMEs collateral-free loans through its online lending platform. The company utilizes proprietary technology and risk models to score customers and approve loans within 48 hours. It provides two primary 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 has already disbursed over Rs 7,000 crore in loans across 2,100 cities in India. Operating digitally without physical branches, the platform covers 15,000 pin codes and has an annual disbursement run rate of over Rs 4,000 crore, serving more than 1.5 million registered users.
Aiming for Future Growth
With a current assets under management (AUM) exceeding Rs 2,000 crore, FlexiLoans aims to grow this figure fivefold to Rs 10,000 crore over the next three years. In FY24, the company reported a 142% year-on-year increase in revenue, rising from Rs 108.5 crore in FY23 to Rs 262 crore. However, profits saw a 50% decline, with the company recording Rs 3.3 crore in profits during the same period.
Commenting on the funding round, Deepak Jain, co-founder of FlexiLoans, said, “We are pleased to have secured Series C funding from global investors who share our vision of empowering MSMEs across India. This capital will enable us to further drive financial inclusion and support underserved MSMEs in accessing the funds they need to grow.”
