PC: The Economic Times
In one of the big developments in the fintech lending sector, Mumbai-based NBFC-fintech lender FlexiLoans has raised about Rs 290 crore, or $35 million, in its latest Series C funding round. The round was led by a consortium of globally reputed investors such as Accion, Nuveen-the investment manager of TIAA-and Fundamentum, besides the existing supporter Maj Invest. The major capital will drive FlexiLoans to scale its operations, widen its product offerings, and deepen the technology infrastructure to serve MSMEs in India better.
FlexiLoans has been tearing its way into the fintech ecosystem, having raised a total debt financing of $16 million earlier this year. This includes $9 million contributed by JM Financial this August and $7 million from Vivriti AMC. These strategic financings hint at FlexiLoans dunning to shore up its market position and increase its penetration deeper into the MSME sector.
Founded by visionary entrepreneurs Deepak Jain, Manish Lunia, Ritesh Jain, and Abhishek Kothari, FlexiLoans has emerged as a leader for its innovative means of giving MSMEs access to collateral-free funds through its advanced digital lending platform. At the business level, it has an enviable track record of rapidly scoring customers and approving loans within as short a period as 48 hours by applying proprietary technology and state-of-the-art risk models for swiftly qualifying and disbursing small business loans, thus simplifying and smoothing the process of borrowing.
Till now, FlexiLoans has disbursed more than Rs 7,000 crore loans to a heavy clientele base comprising small and medium enterprises across the country. With a strong network across more than 2,000 cities along with partnerships with more than 400 collaborators, FlexiLoans has emerged as a strong ally for MSMEs in search of timely financial support to drive growth and expansion efforts.
With over Rs 2,500 crore in total debt and equity raised, FlexiLoans has come through with flying colors as far as its ability to raise funds from a wide range of investors is concerned. Interestingly, the company’s last Series B round worth $90 million had been raised in debt and equity from investors such as Fasanara Capital, MAJ Invest, and the family office of chairman, Caravel Group, Harry Banga, among other lead investors, while also including some existing investors like Sanjay Nayar.
Despite intense competition, FlexiLoans presented commendable growth metrics-the revenue is up 2.4X year on year from Rs 108.5 crore in the previous fiscal year to Rs 262 crore in the latest fiscal period. However, in an attempt to feed further growth and a thrust at market penetration, the company’s net shrunk 50% to Rs 3.3 crore during the same period as it focussed on growth and strategic investments in its future trajectory.
As FlexiLoans empowers MSMEs with more financial solutions and support, it reiterates the company’s commitment to lead inclusive growth and economic resilience within the dynamic ecosystem of India’s small and medium business.
