FlexiLoans Secures $35 Million in Series C Funding from Accion, Nuveen, Fundamentum, and More
FlexiLoans, the Mumbai-based fintech NBFC focused on empowering MSMEs (Micro, Small, and Medium Enterprises), has successfully raised Rs 290 crore (approximately $35 million) in a Series C funding round. The round was led by prominent global investors Accion, Nuveen, and Fundamentum, alongside long-term supporter Maj Invest.
With these fresh funds, FlexiLoans aims to further expand its operational footprint, enhance its product portfolio, and strengthen its technology backbone. The company is set to invest significantly in digital transformation, intending to scale up its innovative digital lending platform, which facilitates collateral-free loans for MSMEs across India.
Strategic Debt Funding Complementing Equity Growth
In addition to the equity infusion, FlexiLoans has raised an impressive $16 million in debt this year. This includes a $9 million debt funding round from JM Financial in August and $7 million secured from Vivriti AMC earlier in 2024, reinforcing its financial standing. Notably, these developments were reported exclusively by I Love Investor.
FlexiLoans: Driving MSME Growth with Innovation
Established by prepared business visionaries Deepak Jain, Manish Lunia, Ritesh Jain, and Abhishek Kothari, FlexiLoans works with the mission to democratize money related to getting to MSMEs. The company leverages cutting-edge proprietary technology and AI-driven risk assessment models to approve loan applications within 48 hours. This quick turnaround has been a game changer for MSMEs, many of which lack access to traditional financial services.
To date, FlexiLoans has disbursed over Rs 7,000 crore in loans to MSMEs across more than 2,000 cities in India. The company also collaborates with over 400 partners, enabling a wide reach to underserved markets.
Robust Funding History and Growth Prospects
FlexiLoans’ growth story is underpinned by strong financial support. The fintech lender has secured over Rs 2,500 crore in combined debt and equity financing, including a $90 million Series B round. Key investors in this round included Fasanara Capital, MAJ Invest, and Caravel Group’s Harry Banga family office, among others.
The company’s impressive financial growth is evident in its 2.4X year-on-year revenue increase, growing from Rs 108.5 crore in FY23 to Rs 262 crore in FY24. However, this rapid growth has come at a cost, as profits declined by 50% to Rs 3.3 crore during the same period. FlexiLoans’ focus remains on balancing growth with profitability in the coming years.
The Road Ahead for FlexiLoans
As one of India’s leading fintech platforms for MSME financing, FlexiLoans is well-positioned to continue its trajectory of rapid expansion. With its latest Series C funding and continued debt raises, the company is expected to further digitize its lending processes, develop new financial products, and expand its reach to more businesses in need of accessible credit.
FlexiLoans’ efforts align with the broader push for financial inclusion in India, where MSMEs form the backbone of the economy but often struggle to secure funding. As the company continues to innovate, it is set to remain a critical player in India’s fintech landscape.
