FlexiLoans.com bags $90 million to cover six years’ of journey in one year

• Flexiloan.com has raised a whopping $90 million in a mix of debt and equity.
• The company plans to use this capital to process loans worth ₹2,000 crore
• It also claims to have access to over 10 million SMEs through its 50+ partners like Amazon, Flipkart, MSwipe, PineLabs, and others.
  

Digital lender Flexiloan.com on Tuesday announced that it has raised a whopping $90 million in a mix of debt and equity to process loans worth ₹1,500 crore- ₹2,000 crore ($190-$260 million) in the next 12 months.

The Series B round was raised from marquee investors like Denmark-based private equity firm MAJ Invest, UK-based intact investor Fasanara Capital, the family offices of Dr Harry Banga and Yogesh Mahansaria. The company has been in talks for this round since last August and started signing term sheets in January, Deepak Jain, co-founder of Flexiloan.com, told Business Insider.

Former chief executive officer (CEO) of Citigroup Sanjay Nayar — husband of Nykaa’s founder Falguni Nayar — also participated in the round, which included a debt infusion of ₹210 crore ($28 million).

The company has raised ₹350 crore to date, which has been used for lending and investment in technology.

The six-year-old startup plans to use this capital to scale its micro small and medium enterprises (SME) lending. It also plans to create a technological edge for its ‘Buy Now Pay Later’ (BNPL), supply chain and co-lending services. For this, the company plans to hire for the product and tech teams.

Achieving six year’s growth in the next 12 months

Founded in 2016 by Deepak Jain, Ritesh Jain Manish Lunia and Abhishek Kothari, Flexiloan.com has disbursed over ₹1,700 crore ($200 million) to micro, small and medium enterprises (MSMEs) across 1,600 cities in India without any offline centers. The company now plans to issue loans upto ₹2,000 crore ($260 millions) —a little more than the loans it has disbursed since its inception — in the next 12 months.

Deepak Jain noted that the company was disbursing loans worth ₹25 crore a month during pre-Covid days. The company managed to scale more than four-fold to disburse over ₹100 crore ($14 million) on a monthly basis, leading to an annual run rate of ₹1,200 crore ($160 million).

“The $100 million will go to $150 by September and $200 million by March next year. If we are able to go at this pace, we should be able to disburse at least ₹1,500-₹2,000 crore this year. The run rates are improving over a period of time,” Jain explained. The Mumbai-based company now plans to double this run rate over the next year, with its co-lending platform contributing a significant share of growth.

It also claims to have access to over 10 million SME through its 50+ partners like Amazon, Flipkart, MSwipe, PineLabs, and others.

“We are impressed with FlexiLoans’ vision, strong management team and solid technology platform for driving financial access to deserving Micro SMEs. Indian MSMEs are increasingly adopting digital tools and FlexiLoans’ technology and data science assets are a perfect match to seize this opportunity to deepen financial access where it's most needed" said David Paradiso, Partner - MAJ Invest.

Asia Link Advisors and Axis Capital acted as advisors for the fund raise.

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