Flexiloans has secured ₹375 crore in its Series C funding round, marking a significant boost to its mission of expanding access to finance for small businesses across the country. The round was led by existing global and domestic investors, including Fundamentum, Accion Digital Transformation, Nuveen, and Maj Invest, with the addition of new investor British International Investment (BII), the UK’s development finance institution. This fresh capital infusion follows a ₹290 crore raise in September 2024, bringing Flexiloans’ total fundraising to ₹665 crore in just six months.
Founded in 2016 by Deepak Jain, Ritesh Jain, and Manish Lunia, Flexiloans has built a digital-first lending platform that addresses the credit gap faced by India’s 60 million MSMEs—many of which remain underserved by traditional banks. The company leverages alternative data and technology to approve and disburse loans rapidly, often within 48 hours, and has disbursed over ₹10,000 crore in loans across more than 2,100 towns and cities. Notably, 66% of its loan book is spread across Tier II and Tier III cities, and over 10% of its loans have been extended to women entrepreneurs. Flexiloans has maintained profitability for three consecutive years and currently manages assets worth over ₹2,300 crore, growing at an impressive 83% CAGR from FY22 to FY25.
The Series C round included both primary equity to fuel operational expansion and secondary transactions to provide liquidity for early investors. The new funds will be used to scale operations, enhance Flexiloans’ suite of credit products—including secured loans and short-term working capital solutions—and further strengthen its technology infrastructure. Co-founder Deepak Jain emphasised that the company is now well-positioned to accelerate growth, deepen its impact, and target an AUM of ₹4,000–₹5,000 crore over the next 12 to 18 months.
Srini Nagarajan, Managing Director and Head of Asia at BII, highlighted the importance of supporting financial inclusion and empowering MSMEs, particularly in India’s Tier 2 and Tier 3 cities. Flexiloans’ digital-only model and AI-driven underwriting have enabled it to efficiently serve the real hinterlands of India, with plans to further tailor lending products to the needs of small traders, retailers, and wholesalers.
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This latest funding round is set to reinforce Flexiloans’ leadership in the MSME digital lending space and enable it to continue driving financial inclusion and economic growth across India.
