Digital lending platform FlexiLoans has raised USD 44 million (~ INR 375 crore) in an extended Series C round, continuing its growth in India’s MSME lending space. This brings the total capital raised in the Series C round in the last 6 months to INR 665 crore.
The latest round was led by existing investors such as Fundamentum Partnership (co-founded by Nandan Nilekani), Accion Digital Transformation Fund, Nuveen, Maj Invest and British International Investment (BII), the UK government’s development finance institution. Unitus Capital was the exclusive advisor to the deal.
FlexiLoans Series C funding includes primary equity which will be used for operational growth and secondary transactions where early high-net-worth individual (HNI) investors from the company’s early days in 2017 have made partial exits. Institutional investors have increased their stakes as they continue to believe in the company’s vision and performance.
Founded in 2016 by Deepak Jain, Ritesh Jain and Manish Lunia, Mumbai-based FlexiLoans is a fully digital non-banking financial company (NBFC) that targets India’s underserved MSMEs. With its proprietary technology stack and AI-powered underwriting, the company offers fast, collateral-free loans with approvals in 48 hours. Its loan portfolio includes term loans from INR 2 lakh to INR 25 lakh and supply chain financing up to INR 10 crore.
As of FY25, FlexiLoans has disbursed over INR 10,000 crore to more than 50,000 MSMEs across 2,100+ towns and cities, with 66% of borrowers based in Tier II and III locations. Over 10% of its loan book is allocated to women entrepreneurs. Its asset under management (AUM) is INR 2,300 crore, of which half is on its own NBFC balance sheet ‘Epimoney’ and the rest is managed through co-lending partnerships with over 25 financial institutions.
In terms of numbers, FlexiLoans clocked INR 262-263 crore in revenue in FY24 up from INR 108.5 crore in FY23—a 2.4x YoY growth. The company also reported INR 3.3 crore in net profit for the third consecutive year despite the investor caution and regulatory scrutiny in the unsecured lending space.
The company has a revenue CAGR of 83% between FY22 and FY25 which it attributes to its focus on underserved markets and use of alternative data for credit assessment. This is the foundation for the company’s next phase of growth.
Looking ahead, FlexiLoans plans to scale its AUM to INR 3,500-4,000 crore by FY26 and INR 5,000 crore in the next 18-24 months. The company will expand into secured lending products like dealer and vendor financing and insurance distribution by applying for a corporate agency licence from IRDAI. Co-founder and CEO Deepak Jain confirmed that FlexiLoans is exploring inorganic growth through acquisitions.
“This funding will help us to fuel the growth of Micro, Small and Medium Enterprises across India,” said Jain. “We are excited to expand our offerings and acquire a larger share of wallet from the MSMEs we serve. The opportunity in Tier II and III cities is huge and with digital adoption on the rise we are well positioned to meet their evolving credit needs.”
FlexiLoans has also strengthened its leadership team to support its growth. Earlier this year the company appointed Hemant Saklecha as Chief Credit and Risk Officer (CCRO) and Pavan Matai as head of its supply chain finance vertical.
The company’s growth is part of a broader trend in the Indian fintech ecosystem where several startups are pursuing NBFC licences to get regulatory flexibility and market control. As traditional banks struggle to serve small borrowers efficiently, NBFCs like FlexiLoans are stepping in with digital models to offer financial inclusion and scalable business.
“India’s entrepreneurs and small businesses are at the heart of our strategy,” said Srini Nagarajan, Managing Director and Head of Asia at BII. “FlexiLoans’ digital model is key to filling the credit gap and driving inclusive growth.”
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