Flexiloans raises ₹375 crore in Series C funding led by BII, others

With total funds raised at ₹665 crore over six months, Flexiloans will scale operations, boost technology and expand reach across India's underserved MSME sector

FlexiLoans.com (Flexiloans), an MSME-focused digital lending NBFC, announced a fund raise of ₹375 crore in its Series C funding round. This follows a ₹290 crore infusion in September 2024, taking the total funds raised to ₹665 crore over the past six months.

 

The round was led by existing prominent global and domestic investors — Fundamentum, Accion Digital Transformation, Nuveen, Maj Invest — along with new investor British International Investment (BII), the UK’s development finance institution.

 

The investment comprises both primary equity to fuel operational expansion and secondary transactions to facilitate liquidity for existing investors. Prior to this round, the company raised capital from Sanjay and Falguni Nayar, MAJ Invest, Fasanara Capital, and other prominent family offices of erstwhile bankers.

 

The fresh capital will be used to expand operations, enhance product offerings, and strengthen technology infrastructure.

 

Deepak Jain, co-founder, Flexiloans, said: “This round not only enabled us to return capital to our early investors, but also gives us the firepower to double down on our mission—empowering underserved MSMEs across India with fast, accessible financing to grow, scale, and thrive. With a total of ₹665 crore raised over the past six months, we are well-positioned to accelerate our growth and deepen our impact.” 

 

India’s MSME sector, which contributes about 30 per cent to the country’s GDP (around $1 trillion), remains significantly underserved. With over 60 million MSMEs and fewer than 10 per cent having access to formal credit, the firm aims to bridge this gap—particularly in Tier II and Tier III cities where access to working capital finance is limited, said the company in a statement.

 

Srini Nagarajan, managing director and head of Asia, British International Investment, said: “Financial inclusion is a key part of our strategy, and this investment underscores our commitment to supporting underserved businesses and entrepreneurs. By providing accessible financing, we aim to unlock new economic opportunities and drive sustainable growth in Tier II and Tier III cities, contributing to a more inclusive economy.”

 

Founded in 2016 by Deepak Jain, Ritesh Jain, and Manish Lunia, Flexiloans focuses on underserved MSMEs. Its fully digital platform has simplified access to financing, enabling small businesses—especially in Tier II and Tier III cities—to receive loan approvals in as little as 48 hours by leveraging alternative data sources.

 

To date, the firm has disbursed over ₹10,000 crore in loans across 2,100+ towns and cities, with an AUM of over ₹2,300 crore and 83 per cent CAGR growth (FY22–FY25). It has supported over 50,000 MSMEs via more than 170,000 loans, with 66 per cent in Tier II, III and beyond, and over 10 per cent of its loan book comprising women borrowers.