FlexiLoans, a fintech lender focused on small and medium enterprises, has raised $90 million in its Series B round through an equity and debt mix from Fasanara Capital, MAJ Invest, and Caravel Group chairman Harry Banga’s family office along with existing shareholders including Sanjay Nayar.
This marks Fasanara Capital’s maiden investment in India. FlexiLoans had raised $20 million in both debt and equity round from the Falguni and Sanjay Nayar family office in October 2021. Prior to this round, the Nayar family owned more than 30% stake in the Mumbai-based company.
The fresh capital will be used to strengthen and broaden its lending base and reach out to a large number of small and underserved small enterprises, said FlexiLoans in a statement. The company will also use the proceeds to scale its BNPL (buy now pay later) platform, expand its partner ecosystem, and create new product category offerings.
Founded by Deepak Jain, Manish Lunia, Ritesh Jain and Abhishek Kothari, FlexiLoans provides MSMEs access to collateral-free funds through its digital lending platform. The company uses proprietary technology and risk models to score customers and approve loans within 48 hours.
FlexiLoans has more than 120 partners including e-commerce and fintech companies like Amazon, Flipkart, Nykaa, Myntra, Pine Labs and Mswipe.
The seven-year-old company claims to have disbursed over Rs 1,700 crore of loans across 1,600 Indian cities and has managed to keep its non-performing assets below 4%. It is now targeting to deploy Rs 1,500 crore to Rs 1,800 crore of loans in the next 12 months.
The company also said that it touched Rs 100 crore in annual revenue run rate (ARR).
For the year ending March 2021, Epimoney Private Limited, parent company of FlexiLoans, reported an 18% fall in operating revenue to Rs 32.54 crore from Rs 39.7 crore in FY20 as per the financial statements filed with RoC. The firm booked losses of Rs 16.53 crore during FY21 as compared to Rs 13.9 crore in the preceding fiscal year 2020.