FlexiLoans raises Rs 375 Cr in Series C funding round led by BII, others

Flexiloans, an MSME-focused digital lending NBFC, has raised Rs 375 crore in its Series C funding round led by existing backers Fundamentum, Accion Digital Transformation, Nuveen and Maj Invest.

The round also saw participation from new investor British International Investment(BII), the UK’s development finance institution.

The fresh funds include primary equity to boost business operations and secondary transactions to give existing investors some liquidity.

Read also- PowerUp Money raises $7.1M in seed round led by Accel, others

“This funding will help in advancing our mission of fueling the growth of Micro, Small, and Medium Enterprises (MSMEs) across India, driving financial inclusion and opening new economic opportunities,” said Deepak Jain, Co-founder of Flexiloans.

“Our focus on Tier II and III cities presents both challenges and opportunities in the MSME lending landscape. A primary challenge is the limited access to formal credit from traditional banks for these underserved businesses and often due to a lack of collateral and formal credit histories. This is compounded by varying levels of financial literacy and difficulties in scaling operations without adequate working capital,” says Jain.  

“We are delighted to support FlexiLoans in their mission to empower MSMEs across India with its innovative digital-only model. Financial inclusion is a key part of our strategy, and this investment underscores our commitment to supporting underserved businesses and entrepreneurs," said Srini Nagarajan, Managing Director and Head of Asia, British International Investment. 

About FlexiLoans 

Founded in 2016 by Deepak Jain, Ritesh Jain and Manish Lunia, FlexiLoans runs a digital lending platform that helps MSMEs get financing. It offers term loans ranging from ₹2 lakh to ₹25 lakh and supply chain financing with limits from ₹25 lakh to ₹10 crore.

FlexiLoans uses its own tech platform and works with over 25 lending partners to offer customized credit products for MSMEs. The goal is to improve access to capital and promote financial inclusion across India. 

So far, it has disbursed over ₹10,000 crore in loans across 2,100+ towns and cities, managing assets worth over ₹2,300 crore. 

Between FY22 and FY25, it has grown at a CAGR of 83%. The company has given out 1.7 lakh+ loans to over 50,000 MSMEs, with 66% of them based in Tier II, III, and smaller towns.

Startup Funding News: Your Gateway to Every Funding Update.

Latest Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.

Startup Stories: Discover inspiring tales of startups overcoming challenges, and achieving success.