- The round was led by renowned global and domestic investors Accion, Nuveen, Fundamentum, and existing investor Maj Invest.
- Before this round, the company raised capital from Sanjay and Falguni Nayar, MAJ invest, Fasanara capital along with other prominent family offices of erstwhile bankers.
- The investment is aimed at bridging the critical financing gap for MSMEs, especially in tier 2 and tier 3 cities.
- FlexiLoans has disbursed INR ₹7,000+ crores across 2,100+ town and cities with 100% digital sourcing and zero branches.
- FlexiLoans is a leader in the Ecosystem embedded finance market while Digital marketing channels bring 4mn+ leads per month
- The firm has empowered over 50,000 MSMEs with 130k+ loans across various sectors in India and aims to drive financial empowerment and unlock new economic opportunities for these businesses.
Tuesday 10 September 2024: FlexiLoans.com, India’s leading MSME-focused digital lending NBFC, proudly announces a successful equity raise of US$34.5 million (₹290 crores) in its Series C funding round. The round was led by prominent global and domestic investors Accion, Nuveen, Fundamentum, and existing investor Maj Invest.
The firm will use the fresh capital to expand its operations, enhance its product offerings, and strengthen its technological infrastructure. This capital infusion will empower the firm to further its mission of fuelling the growth of Micro, Small and Medium-sized Enterprises (MSMEs) across India, driving financial inclusion, and unlocking new economic opportunities.
India’s SME sector, which contributes about 30% to the country’s GDP, remains significantly underserved. Less than 10% of MSMEs have access to loans from traditional financial institutions, leaving a vast capital gap. The firm aims to bridge this gap, particularly in tier 2 and tier 3 cities where access to finance is limited. As the Indian economy continues to expand, the demand for MSME financing will only increase, presenting a substantial opportunity for FlexiLoans.
Founded in 2016, by Deepak Jain, Ritesh Jain, and Manish Lunia, has emerged as a pioneer in India’s digital lending ecosystem, focusing on underserved MSMEs in India. With its fully digital platform, it has simplified access to capital, enabling small businesses across tier 2 and 3 cities to receive loan approvals in as little as 48 hours by leveraging alternative data sources.
This digital-first approach has democratized access to financial resources for millions of micro and small entrepreneurs who lack conventional credit history and are typically excluded from traditional lending systems. FlexiLoans’ strategic partnerships with e-commerce platforms, payments tech, foodtech and other merchant ecosystems have been pivotal in amplifying its reach and enhancing its ability to underwrite risk.
Through its own books and integrations with 20+ lenders via its in-house tech platform, Flexiloans has been able to design innovative and customised credit products and underwrite loans for a larger and diverse range of MSMEs and MSME customers while at the same time maximising capital supply.
Till date, FlexiLoans has disbursed over ₹7,000 crore in loans across more than 2,100 towns & cities and boasts of over INR 2,000 crore in AUM.
Speaking on the Series C funding round, Deepak Jain, Co-founder, FlexiLoans, said: “We are pleased to have secured ₹290 crores in our Series C round from such global blue-chip private equity funds who resonate with our vision to empower MSMEs across India. With this capital, we will further our mission of driving financial inclusion, expanding our reach, enabling more underserved MSME businesses to access the funds they need to grow and succeed”.
Nethra Bhat, Partner, Asia, Accion Digital Transformation, said: “FlexiLoans is connecting MSMEs across India to working capital so they can better serve their customers. They understand the Indian digital MSME space and their customer’s needs, and have a strong tech platform. We’re excited to lead this round of equity investment to support their growth.”
Radhika Shroff, Managing Director, Impact Investing Private Equity at Nuveen, said: “India is home to over 60 million small businesses in need of working capital. FlexiLoans provides a commercial and proven solution by offering small businesses a differentiated digital delivery and underwriting model to scale financial inclusion to underserved tier 2 and tier 3 cities. We are excited to back FlexiLoans which is poised for continued exponential growth.”
Mayank Kachhwaha, Principal, Fundamentum, said: “FlexiLoans has an extremely strong record of execution, a high-quality team, and a razor-sharp focus on profitable growth across their verticals. They’ve built a great foundation, and we’re excited to partner with them in their next phase of growth.”
David Paradiso, Partner, Maj Invest, said: “We are glad to participate in the Series C fundraise for FlexiLoans and are excited to welcome the new investors. We look forward to building a leading franchise in the financial services segment.”
At the heart of FlexiLoans’ success is its cutting-edge proprietary credit underwriting engine, powered by advanced machine learning algorithms. It is at the core of the company’s ability to assess borrowers’ creditworthiness without the need for traditional collateral. This has been a game-changer for over 50,000+ MSMEs enabling them with fast, hassle-free access to capital and empowering them to scale operations, fuel business expansion, create jobs and contribute to India’s growing economy.
Unitus Capital acted as the exclusive advisor to the transaction.
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About the Investors:
- Accion Digital Transformation: Accion Digital Transformation provides investment capital and strategic support to banks and finance companies that are connecting millions of small businesses and individuals to the digital economy. Our equity and quasi-equity investments focus on providing support for digital transformation to companies serving micro, small, and medium enterprises across Africa, Asia, and Latin America. Accion Digital Transformation is an investment strategy of Accion and is managed by Accion Impact Management. More at www.accion.org/digitaltransformation.
- Nuveen: Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.2 trillion in assets under management as of 31 March 2024 and operations in 27 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit www.nuveen.com.
- Fundamentum: Launched in 2017, Fundamentum, founded by Nandan Nilekani, is one of the first ‘scale-up’ home-grown tech venture funds and a strong believer in the ‘India story’. The firm believes in backing exceptional entrepreneurs who are creating built-to-last companies out of India, and actively supports them in their growth journey. With its concentrated portfolio approach, Fundamentum leads and co-leads $15-40 million funding rounds, investing in 4-5 start-ups each year and operates on the ‘investment + advice’ model. It focuses on tech-driven startups in the Consumer Internet, B2B marketplaces, Enterprise-Tech, BharatApps, Fintech, Edtech and other emerging sectors in India. The fund invests in Series B & C (scale-up stage) Indian start-ups that have attained product-market fit. The select portfolio of Fundamentum includes leading consumer internet and B2B tech startups such as Spinny, Kuku FM, Fareye, Wishlink, ProcMart and PharmEasy.
- Maj Invest: Maj Invest is a Danish asset management company with about USD 12bn under management, providing services in asset management and private equity. With headquarters in Copenhagen, Denmark, the company employs more than 108 highly skilled professionals worldwide. Maj Invest was founded more than 19 years ago and is fully owned by management and employees. The financial inclusion business area is one of the several business areas of Maj Invest and operates on Maj Invest’s regulated institutional platform with its own dedicated team supported by the legal, finance, and administrative departments. The financial inclusion team of eleven people is based in Copenhagen and in regional offices in Lima, Peru and Mumbai, India. Maj Invest Financial Inclusion Fund III K/S (Fund III), was established in 2020 and has invested in seven companies around the globe.
About FlexiLoans:
FlexiLoans is India’s leading digital lending platform, dedicated to empowering MSMEs by providing easy access to finance. With over Rs. 2,000+ cr. in AUM, the company offers term loans (ranging from Rs. 2 lakhs to 25 lakhs) and supply chain finance (limits ranging from Rs. 25 lakhs to Rs. 10 crores) through its innovative use of technology to help businesses realize their full potential. Funding is provided via its own NBFC as well as its lending partners integrated via FlexiLoans’ in-house tech platform. The company’s vision is to be the preferred financial partner for SMEs across India, driving economic growth and fostering entrepreneurship.
FlexiLoans is at the forefront of revolutionizing digital lending in India, setting new standards for the industry. The company remains unwavering in its commitment to supporting India’s vibrant entrepreneurial community by providing timely and accessible financial solutions.
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Media contact
Thessa Mooij
media@accion.org
Director of Public Relations
