Mumbai-based digital lending startup Flexiloans raised Rs 290 crore (around $35 million) in equity funding. American not-for-profit fund Accion, US asset management firm Nuveen, and Nandan Nilekani-backed Fundamentum led the round.
Denmark-based Maj Invest, which participated in the previous round, also joined. However, other existing investors did not participate, according to Flexiloans’ statement on Tuesday.
“We are a cash positive business; hence, all the fresh funds raised will be used to capitalise our credit business and grow our operations,” said Deepak Jain, cofounder of Flexiloans.
Although Jain did not reveal the company’s post-deal valuation, an estimated the digital lender’s value at around Rs 1,200 crore or about $143 million.
Founded in 2016 by Indian School of Business alumni Deepak Jain, Ritesh Jain, and Manish Lunia, Flexiloans has raised Rs 636 crore in equity funding.
Former KKR India chief Sanjay Nayar is one of its key supporters.
The company manages assets worth Rs 2,000 crore and has disbursed Rs 3,000 crore loans, primarily to small and medium businesses, during 2023-24. Its gross bad loans stand at 3.4% of its AUM.
Flexiloans aims to disburse Rs 5,100 crore in loans for the current fiscal year. It primarily offers term loans and supply chain financing.
While the company acquires customers digitally, a large portion of loan servicing and collections is handled through its physical network of agents.
“We have invested in building strong collections capabilities, which has helped keep our bad assets under check, and we intend to grow sustainably,” Jain said.
