Flexiloans Secures Rs 290 Crore In Series C Funding To Expand MSME Lending Operations

New Delhi, Sep 11 (KNN) MSME-focused digital lending platform FlexiLoans has raised Rs 290 crore in its Series C equity funding round, led by global investors Accion, Nuveen (the investment manager of TIAA), and Fundamentum, with existing investor Maj Invest also participating.

The funding round comprised both primary and secondary transactions.

The Mumbai-based NBFC-fintech firm plans to utilise the capital to expand its operations, enhance its product offerings, and strengthen its technological infrastructure.

Founded in 2016 by Deepak Jain, Ritesh Jain, and Manish Lunia, FlexiLoans focuses on providing loans to MSMEs that are typically excluded from traditional lending due to a lack of conventional credit history.

Through its in-house NBFC, Epimoney Private Limited, and partnerships with over 20 lenders, FlexiLoans offers working capital loans ranging from Rs 2 lakh to Rs 25 lakh, and supply chain finance with limits between Rs 25 lakh and Rs 10 crore.

Since its inception, the company, which turned profitable in FY23, claims to have disbursed over 1 lakh loans worth Rs 7,000 crore, with Rs 3,000 crore disbursed in FY24 alone across more than 1,500 cities.

As of June 30, 2023, FlexiLoans’ assets under management (AUM) stood at Rs 1,817 crore, a significant increase from Rs 1,067 crore in March 2023.

Approximately 54 per cent of FlexiLoans’ borrowers are first-time business loan recipients, and 70 per cent of its loans are directed to MSMEs in Tier 2 and Tier 3 cities.

A Crisil Ratings note reported that FlexiLoans has a net worth of Rs 294 crore.

This latest round brings the company’s total equity funding to Rs 636 crore, while its debt financing has exceeded Rs 2,000 crore, including a USD 90 million Series B round in June 2022 from Fasanara Capital, Maj Invest, and others.

FlexiLoans' recent capital infusion reflects the growing investor interest in fintech NBFCs, particularly those addressing the credit needs of underserved MSMEs.

Fintech NBFCs are increasingly leveraging advanced technology to offer financial services, benefiting from improved regulatory clarity around digital lending and NBFC operations.

A Crisil report estimated that the MSME credit gap in India stood at Rs 92 trillion as of fiscal 2023, with less than 10 per cent of the 70 million MSMEs accessing formal credit.

Deepak Jain, co-founder of FlexiLoans, stated, “We aim to reach a loan book of Rs 5,000 crore, combining supply chain finance and term loans.”

FlexiLoans operates on a branchless business model with fully digital processes, from loan origination to disbursement.

The company partners with digital platforms such as Amazon, Flipkart, Paytm, and PhonePe, as well as aggregators like Paisabazaar, to reach MSMEs.

Commenting on the investment, Nethra Bhat, Partner for Asia, Accion Digital Transformation, highlighted FlexiLoans’ role in providing working capital to MSMEs across India.

Radhika Shroff, Managing Director, Impact Investing at Nuveen, emphasised the vast potential of India's 60 million small businesses in need of capital, praising FlexiLoans' digital delivery and underwriting model.

Mayank Kachhwaha, Principal, Fundamentum, also commended the company for its strong execution and profitable growth trajectory.

(KNN Bureau)