FlexiLoans raises Rs 375 Cr in extended Series C round

MSMEs-focused fintech lender FlexiLoans has raised Rs 375 crore ($44 million) in its Series C funding round, led by existing investors Fundamentum, Accion Digital Transformation, Nuveen, and Maj Invest and joined by new investor British International Investment (BII), the UK’s development finance institution.

This follows a Rs 290 crore ($35 million) infusion in September 2024, taking the total funds raised to Rs 665 crore (nearly $78 million) over the last six months. 

The investment comprised both primary equity to fuel operational expansion and secondary transactions to facilitate liquidity for existing investors. Prior to this round, the company had raised capital from Sanjay and Falguni Nayar, MAJ Invest, Fasanara Capital, along with other prominent family offices of erstwhile bankers.

The fresh capital will be used to expand operations, enhance product offerings, and strengthen technology infrastructure, FlexiLoans said in a press release. 

Founded in 2016 by Deepak Jain, Ritesh Jain, and Manish Lunia, FlexiLoans focuses on underserved MSMEs through a fully digital platform that uses alternative data to simplify access to financing and provide loan approvals to small businesses in tier II and tier III cities within 48 hours.

Through partnerships with over 25 lenders and more than 150 strategic allies across e-commerce, payments, and other ecosystems, FlexiLoans has rapidly scaled distribution and enhanced credit underwriting.

FlexiLoans claims to have disbursed over Rs 10,000 crore in loans across 2,100+ towns and cities to date, with an AUM of Rs 2,300 crore and a CAGR of 83% from FY22 to FY25. The company says it has supported over 50,000 MSMEs through 1.7 lakh loans, with 66% from tier II, III, and beyond, and more than 10% of its loan book allocated to women borrowers.

According to startup data intelligence platform TheKredible, FlexiLoans saw a 2.4X year-on-year growth in its operating revenue to Rs 262 crore in FY24 from Rs 108.5 crore in FY23. However, the profits of the company declined by 50% to Rs 3.3 crore in the same period.