FlexiLoans has raised $90 million, to focus on technology development and double its loan book via its co-lending, buy-now-pay-later services (BNPL), and supply chain finance platforms.
The funding is a part of its Series B funding round from Denmark-based private equity firm Maj Invest and UK-based fintech investor Fasanara Capital.
The company plans to deploy the funds to “focus on technology development and double its loan book via its co-lending, buy-now-pay-later services (BNPL), and supply chain finance platforms”.
“We are very excited to have institutional players MAJ Invest, Fasanara Capita, and the Banga and Mahansaria family offices join us in our mission to help small businesses grow in India. Their experience in developing global fintech companies will help us in creating better products as well as organisational building,” said Deepak Jain, Co-founder at Flexiloans.com.
The investment round provides it a strong runway for its growth as it comes at a time when there is a fintech push by the government, especially for the MSME sector.
The family offices of Hong Kong-based investor Harry Banga and Yogesh Mahansaria (Alliance Tire Group founder) and existing shareholders, including veteran banker and deal maker Sanjay Nayar, who led KKR in India for over a decade, also took part in the round.
This investment marks Fasanara Capital’s first SME fintech investment in India and MAJ Invest’s third investment this year, the company said in a statement.
The startup will also continue to invest in technology and strengthen aspects of customer automation, risk management, and analytics capabilities.
FlexiLoans aims to double its disbursement over the next 12 Months
“Our current disbursement to date is about Rs 1,700 crore and we plan to double this over the next 12 months through co-lending, BNPL, and supply chain finance platforms. The fresh capital will be used to strengthen our existing lending base and reach out to more small and underserved enterprises across 1,600 cities we serve,” he said.
Founded in 2016 by Deepak Jain, Manish Lunia, Ritesh Jain and Abhishek Kothari, the MSME-focused digital NBFC claims to be growing at a CAGR of 500 percent with over 15 lakhs registered users.
A large portion of its loan book is generated from disbursals to small businesses in Tier 2 and 3 towns.
Flexiloans has built a co-lending platform—Bi-frost—and integrated with seven co-lenders, including Fullerton, RBL Bank, and Karur Vysya Bank. Around 55-60 percent of new loans are disbursed via the co-lending platform. It operates in the embedded finance space and provides financing to sellers or vendors of ecommerce platforms, including Amazon, Flipkart, Nykaa, Myntra, and others.
