New-age non-banking finance company Flexiloans has raised Rs 375 crore in a mix of primary and secondary capital to fuel its expansion plan.
The funding was led by existing investors Nandan Nilekani’s Fundamentum, US-based impact investor Accion Digital Transformation, American asset management firm Nuveen, and Denmark-based asset management major Maj Invest.
“Through this round, we have given exits to the high networth individuals who had invested in the company in 2017. Most of our existing institutional investors have doubled down in the company,” said Deepak Jain, a cofounder of Flexiloans.
Jain did not comment on the valuation at which this round was closed.
UK’s development finance firm British International Investment was the new investor.
Sanjay Nayyar-backed Flexiloans, founded in 2016 in Mumbai, focuses on small businesses, offering them term loans and working capital.
The funding round comes on the back of a Rs 290-crore infusion in October 2024. ET had reported then that the round had pushed Flexiloans’ valuation to $140 million. While the October round was all primary capital, this round had a significant secondary component.
This comes at a time when the MSME-focused lending opportunity in the country has opened following heightened regulatory scrutiny in unsecured consumer loans.
Jain said that despite the headwinds that the sector has faced, Flexiloans has managed to report three years of profitability, which helped the company raise funding even at a time when equity infusion has been hard for lending fintechs.
Flexiloans closed FY24 with total revenue of Rs 263 crore and a net profit of Rs 3 crore. The company is yet to file its FY25 financials.
Backed by its own NBFC Epimoney, Flexiloans has built a book worth Rs 2,300 crore. Jain said about 50% of the assets under management (AUM) sits on its own books and the rest is with partner lenders.
Flexiloans sources business from ecommerce portals and food delivery platforms by financing sellers on these platforms. It also uses digital marketing to get leads on its own website. The startup also works with online marketplaces such as Paisabazaar.
“We will scale up our products with a target of achieving Rs 3,500 to 4,000 crore in AUM by FY2026,” Jain said. Eventually, the target for the company is to achieve the Rs 5,000-crore milestone in the next 18 to 24 months.
While the startup offers unsecured business loans, its plan is to expand into secured lending, launch new credit products like dealer and vendor financing, and get into insurance distribution as well.
Jain said the management is planning to apply for a corporate agent licence from the Insurance Regulatory and Development Authority of India.
Also Read: Flexiloans secures Rs 290 crore in funding from Accion, Fundamentum, others
The funding was led by existing investors Nandan Nilekani’s Fundamentum, US-based impact investor Accion Digital Transformation, American asset management firm Nuveen, and Denmark-based asset management major Maj Invest.
“Through this round, we have given exits to the high networth individuals who had invested in the company in 2017. Most of our existing institutional investors have doubled down in the company,” said Deepak Jain, a cofounder of Flexiloans.
Jain did not comment on the valuation at which this round was closed.
UK’s development finance firm British International Investment was the new investor.
Sanjay Nayyar-backed Flexiloans, founded in 2016 in Mumbai, focuses on small businesses, offering them term loans and working capital.
The funding round comes on the back of a Rs 290-crore infusion in October 2024. ET had reported then that the round had pushed Flexiloans’ valuation to $140 million. While the October round was all primary capital, this round had a significant secondary component.
This comes at a time when the MSME-focused lending opportunity in the country has opened following heightened regulatory scrutiny in unsecured consumer loans.
Jain said that despite the headwinds that the sector has faced, Flexiloans has managed to report three years of profitability, which helped the company raise funding even at a time when equity infusion has been hard for lending fintechs.
Flexiloans closed FY24 with total revenue of Rs 263 crore and a net profit of Rs 3 crore. The company is yet to file its FY25 financials.
Backed by its own NBFC Epimoney, Flexiloans has built a book worth Rs 2,300 crore. Jain said about 50% of the assets under management (AUM) sits on its own books and the rest is with partner lenders.
Flexiloans sources business from ecommerce portals and food delivery platforms by financing sellers on these platforms. It also uses digital marketing to get leads on its own website. The startup also works with online marketplaces such as Paisabazaar.
“We will scale up our products with a target of achieving Rs 3,500 to 4,000 crore in AUM by FY2026,” Jain said. Eventually, the target for the company is to achieve the Rs 5,000-crore milestone in the next 18 to 24 months.
While the startup offers unsecured business loans, its plan is to expand into secured lending, launch new credit products like dealer and vendor financing, and get into insurance distribution as well.
Jain said the management is planning to apply for a corporate agent licence from the Insurance Regulatory and Development Authority of India.
Also Read: Flexiloans secures Rs 290 crore in funding from Accion, Fundamentum, others
