FlexiLoans Secures Rs 375 Crore in Series C Funding

FlexiLoans, a fintech lender dedicated to MSMEs, has successfully raised Rs 375 crore ($44 million) in its Series C funding round. This funding round was spearheaded by existing investors including Fundamentum, Accion Digital Transformation, Nuveen, and Maj Invest, alongside new participant British International Investment (BII), a development finance institution from the UK.

This round follows a significant Rs 290 crore ($35 million) investment made in September 2024, bringing the cumulative funding to Rs 665 crore (approximately $78 million) over the past six months.

The investment included both primary equity to support operational growth and secondary transactions aimed at providing liquidity for existing investors. Prior to this round, FlexiLoans had attracted capital from notable backers, including Sanjay and Falguni Nayar, MAJ Invest, and Fasanara Capital, along with other influential family offices linked to former bankers.

Capital Utilisation and Business Strategy

FlexiLoans has indicated that the newly acquired funds will be directed towards expanding operations, improving their product features, and enhancing their technology framework.

About FlexiLoans

Founded in 2016 by Deepak Jain, Ritesh Jain, and Manish Lunia, FlexiLoans aims to support underserved MSMEs via a fully digital platform. This platform leverages alternative data to simplify loan access and provides approvals to small businesses located in tier II and tier III cities within a 48-hour time frame.

Partnerships and Growth

With collaborations involving over 25 lenders and more than 150 strategic partners across various sectors such as e-commerce and payments, FlexiLoans has swiftly enhanced its distribution capabilities and credit assessment processes.

Loan Disbursements and Performance Metrics

FlexiLoans reports having disbursed in excess of Rs 10,000 crore in loans across more than 2,100 towns and cities. The company boasts an asset under management (AUM) of Rs 2,300 crore and an impressive compound annual growth rate (CAGR) of 83% projected from FY22 to FY25. To date, it has provided support to over 50,000 MSMEs through 1.7 lakh loans, with approximately 66% of these loans benefiting tier II and III cities, and over 10% allocated to women borrowers.

Financial Performance

According to data from a startup intelligence platform, FlexiLoans experienced a 2.4X increase in year-on-year operating revenue, reaching Rs 262 crore in FY24, up from Rs 108.5 crore in FY23. However, the company faced a 50% decline in profits, which amounted to Rs 3.3 crore during the same fiscal period.