Mumbai, India-based digital lending startup FlexiLoans raised USD 90 million in Series B funding. The round took place on June 6, 2022. Denmark-based private equity firm Maj Invest and UK-based fintech investor Fasanara Capital participated in the funding.
The family offices of Hong Kong-based investors Harry Banga and Yogesh Mahansaria (Alliance Tire Group founder) also invested in FlexiLoans. Meanwhile, the round saw participation from existing shareholders, including a veteran banker and deal maker Sanjay Nayar, who led KKR in India for over a decade.
Purpose of Funding for FlexiLoans
With the latest capital infusion, it plans to focus on technology development. FlexiLoans will look to double its loan book via its co-lending, buy-now-pay-later services (BNPL) and supply chain finance platforms.
Meanwhile, the fintech lending startup will continue to invest in technology. Besides, the platform will strengthen aspects of customer automation, risk management and analytics capabilities.
The recent investment marked Fasanara’s first transaction in India’s technology space. The capital raised is a combination of equity and debt.
What the founder has to say
“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 create better products and organisational building. 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 the 1,600 cities we serve. We currently disburse over Rs 100 crore of loans monthly and plan to double this run rate over the next year, with our co-lending platform contributing a significant share of growth,” said Deepak Jain, Co-founder at Flexiloans.com.
What the investor has to say
“India is a strong market for MSME financing. We are delighted to partner with FlexiLoans.com, which is amongst the pioneers in India’s digital MSME lending space and shares a similar commitment to Fasanara’s reducing the financing gap for MSMEs. Embedded financing to merchants in the e-commerce ecosystem is a sweet spot that we invest in worldwide, and FlexiLoans.com has a strong product-led partnership in India for the same,” said Francesco Filia, CEO of Fasanara Capital.
About FlexiLoans
Deepak Jain, Manish Lunia, Ritesh Jain and Abhishek Kothari co-founded FlexiLoans in 2016. The startup is an MSME-focused digital NBFC. It claims to be growing at a CAGR of 500 per cent, with more than 15 lakh registered users. It caters to the small businesses in Tier 2 and 3 towns.
The startup operates in the embedded fintech segment and provides financing to sellers or vendors of e-commerce platforms, including Amazon, Flipkart, Nykaa, Myntra, and others.
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