SME lending platform 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 (BII), the UK’s development finance institution.
The fresh capital raise includes both primary equity to support operational growth and secondary transactions to provide liquidity for existing investors, the company said in a statement on Wednesday.
“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, Flexiloans to YourStory.
This follows a Rs 290 crore infusion in September, taking the total funds raised to Rs 665 crore over the last 6 months. The firm previously attracted investment from notable backers including Sanjay and Falguni Nayar, MAJ Invest, Fasanara Capital, and several family offices led by former banking executives.
The new funding will be utilised to expand operations, fuel product development, and technology infrastructure.
Founded in 2016 by Deepak Jain, Ritesh Jain, and Manish Lunia, FlexiLoans operates a digital lending platform focused on enabling MSMEs access to financing solutions. It provides term loans from Rs 2 lakh to Rs 25 lakh alongside supply chain financing with limits spanning Rs 25 lakh to Rs 10 crore.
With a proprietary tech stack and partnerships with over 25 lending institutions, it offers tailored credit products designed to reach a wider MSME audience, to boost capital access and drive financial inclusion across the country.
The company has disbursed over Rs 10,000 crore in loans across 2,100+ towns and cities to date, with an asset under management (AUM) of Rs 2,300+ crore and a compound annual growth rate (CAGR) of 83% between FY22 and FY25.
It has extended 170,000+ loans to more than 50,000 MSMEs, 66% of which are located in Tier II, III, and smaller towns.
“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, 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.
“However, the opportunity lies in a vast untapped market eager for credit, the ability to leverage widespread digital adoption for 100% online loan origination and rapid approvals (within 48 hours), and the use of proprietary machine learning and alternative data to assess creditworthiness without traditional collateral,” he adds.
The company has partnered with major ecommerce and payments platforms like Flipkart, Amazon, Paytm, and PhonePe, enabling seamless loan origination within these ecosystems.
“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.
Unitus Capital served as the exclusive advisor for the transaction.
Edited by Jyoti Narayan
