Flexiloans Bags ₹375 Cr in Series C, Targets ₹5,000 Cr AUM Within 18 Months
Digital lending firm aims to accelerate growth with new funding round, eyes expansion into deeper Bharat markets and secured loan products.
Major Capital Boost Positions Flexiloans for Aggressive Expansion
Flexiloans, a leading digital lending platform focused on India’s micro, small, and medium enterprises (MSMEs), has successfully secured ₹375 crore in a Series C funding round. This fresh capital injection marks a significant milestone for the fintech startup as it gears up to scale its assets under management (AUM) to ₹5,000 crore over the next 12 to 18 months.
This latest round follows a ₹290 crore raise in September 2024, pushing the company’s total fundraising tally to ₹665 crore within just six months. The latest capital infusion saw enthusiastic participation from legacy investors, among them Fundamentum, Accion Digital Transformation Fund, Nuveen, and Maj Invest, reaffirming their continued confidence in the company’s long-term vision. A key highlight was the addition of British International Investment (BII), the UK’s development-focused financial institution, stepping in as a fresh strategic partner.
Growth Fueled by Bharat-Focused Lending and Hyperlocal Solutions
Flexiloans has carved a niche by focusing on underserved markets across India, particularly in non-metro regions. Approximately 75% of the company’s disbursements have been concentrated in tier 2 to tier 5 cities, where access to formal credit has historically been limited.
Co-founder Deepak Jain emphasized the company’s commitment to rural and semi-urban India, stating, “Our journey is rooted in Bharat. Our efforts go far beyond urban lending—we’ve deeply rooted ourselves in the country’s interior regions, where access to credit can genuinely transform lives.”
Looking ahead, Flexiloans plans to deepen its hyperlocal approach, creating loan products tailored to specific sectors such as retail, wholesale, and small trading businesses. These region-specific offerings are designed to match the nuanced financial needs of local entrepreneurs and enterprises.
Diversifying Products: From EMI Loans to Secured Financing
In preparation for its next growth phase, Flexiloans is actively working to diversify and enhance its range of financial offerings. While the platform is already known for its unsecured EMI-based loans and supply chain finance products, it now aims to introduce secured financing options.
The forthcoming offerings are set to feature brief-tenure working capital solutions and transaction-specific financing structures, thoughtfully designed to address the unique needs of MSMEs. Jain noted that these new products are intended to address the growing appetite for flexible capital among small businesses across the country.
“Our focus now is on building secured loan solutions while continuing to scale our supply chain financing offerings,” he explained. “We’re listening to the market and responding with solutions that MSMEs actually need.”
Technology-Driven Lending: AI at the Core of Credit Decisions
Technology continues to be a foundational pillar of Flexiloans’ operations. The company leverages artificial intelligence and machine learning to refine its credit underwriting processes—especially for thin-file borrowers who may lack extensive credit histories.
Using alternative data sources such as purchase records, credit bureau insights, and other ecosystem information, the firm’s risk models are continuously evolving to improve accuracy and credit quality. By harnessing data intelligence, Flexiloans is able to make well-grounded credit decisions while maintaining cost-efficiency across its operations.
“Our tech-first mindset gives us the ability to reach customers that traditional lenders might overlook. And more importantly, we can do so at scale,” Jain said.
Partial Exits for Early Investors: A Strong Mark-to-Market Moment
Alongside the primary infusion, the Series C round also featured a secondary component, offering some early-stage investors an opportunity to partially exit with attractive returns. This move reflects the company’s growing valuation and investor confidence in its long-term growth trajectory.
Jain remarked that such exits are beneficial for both the company and its early backers. “Recognizing and valuing the early supporters who placed their trust in us from day one is truly essential. While this isn’t a full exit, it does give them liquidity and sets the stage for even better outcomes when we eventually go public.”
What Lies Ahead: Scaling AUM and Unlocking the Next Growth Chapter
With fresh funding secured and strategic partners on board, Flexiloans is setting its sights high. The company has outlined a clear goal to grow its AUM to ₹4,000–₹5,000 crore over the next year and a half. This scale-up will be powered by a mix of product diversification, regional focus, and continued investment in cutting-edge technology.
From tier 4 towns to metropolitan corridors, the company’s mission remains unchanged—making affordable, accessible credit available to MSMEs that fuel India’s economic engine.
Final Thoughts
Raising ₹375 crore through its Series C funding marks a defining milestone in Flexiloans’ path toward rapid and sustained growth. With a cumulative ₹665 crore secured in just half a year, the fintech is poised to transform MSME lending across India. By deepening its reach into smaller towns, diversifying into secured products, and leveraging technology for smarter lending, Flexiloans is crafting a roadmap for sustainable and inclusive financial growth.
As the company moves toward an ambitious ₹5,000 crore AUM target, it remains focused on empowering small businesses across Bharat—fueling job creation, entrepreneurial dreams, and grassroots economic development.
:
The image added is for representation purposes only
