FlexiLoans Company Profile

Background

FlexiLoans, established in 2016, is a Mumbai-based digital lending platform dedicated to providing quick, flexible, and adequate funding solutions to micro, small, and medium enterprises (MSMEs) across India. The company's mission is to offer "Loans at a click," leveraging technology and alternative data to facilitate access to collateral-free loans for businesses that often face challenges in securing financing through traditional channels. As a Reserve Bank of India (RBI) registered Non-Banking Financial Company (NBFC), FlexiLoans has disbursed over ₹7,000 crore in loans, serving more than 2,100 cities and 15,000 pin codes without the need for physical branches.

Key Strategic Focus

FlexiLoans focuses on empowering underserved MSMEs by providing collateral-free loans through a fully digital process. The company specializes in various loan products, including term loans, loans against point-of-sale (POS) transactions, and vendor financing. By utilizing proprietary technology and risk models that analyze alternative data points, FlexiLoans ensures efficient and transparent customer experiences. The primary markets targeted are MSMEs in tier-2 and tier-3 cities, addressing the significant credit gap in these regions.

Financials and Funding

FlexiLoans has successfully raised substantial funding to support its growth and operations:

• Series C Funding (September 2024): Raised ₹290 crore from global and domestic investors, including Accion, Nuveen, Nandan Nilekani-backed Fundamentum, and existing investor Maj Invest. The funds are intended to expand operations, enhance product offerings, and strengthen technological infrastructure.

• Series B Funding (June 2022): Secured $90 million (approximately ₹700 crore) in a mix of equity and debt. The equity portion was led by Denmark-based MAJ Invest, while the debt was raised from UK-based Fasanara Capital. The capital was utilized to double the loan book and invest in technology development.

• Funding Round (October 2020): Raised ₹150 crore in equity and debt funding, with the equity round led entirely by the Falguni and Sanjay Nayar Family Office.

As of September 2024, FlexiLoans reported assets under management (AUM) exceeding ₹2,000 crore, with plans to grow this to ₹3,500 crore. The company has been profitable for the last three years, targeting double-digit profit in the current financial year and triple-digit profits in the next.

Technological Platform and Innovation

FlexiLoans differentiates itself through its robust technological platform and innovative use of data science:

• Proprietary Risk Models: Developed advanced algorithms trained on millions of records to accurately price unsecured MSME loans, focusing on alternative and surrogate data points.

• End-to-End Digital Process: Offers a fully digital loan application and processing system, enabling quick disbursal of funds without the need for physical branches.

• Co-Lending Platform: Introduced 'Bi-Frost,' an end-to-end API solution that facilitates seamless integration with various lending institutions, enabling working capital loans within 48 hours with a 98% approval rate from lending partners.

Leadership Team

FlexiLoans was founded by a team of experienced professionals:

• Deepak Jain: Co-founder with a background in banking, having previously worked at Axis Bank.

• Manish Lunia: Co-founder with experience in mergers and acquisitions at the Aditya Birla Group.

• Ritesh Jain: Co-founder with expertise in financial services.

• Abhishek Kothari: Co-founder and IIT Bombay alumnus, who has since exited the company.

Competitor Profile

Market Insights and Dynamics

The Indian MSME sector contributes approximately 30% to the country's GDP, yet less than 10% of MSMEs have access to loans from traditional financial institutions. This significant credit gap presents a substantial opportunity for digital lenders like FlexiLoans.

Competitor Analysis

Key competitors in the digital lending space targeting MSMEs include:

• Lendingkart: Provides working capital loans to SMEs with a focus on quick disbursal and minimal documentation.

• Aye Finance: Offers business loans to micro and small enterprises, emphasizing financial inclusion.

• Capital Float: Provides flexible credit products to SMEs, including term loans and working capital loans.

These competitors focus on leveraging technology to streamline the lending process and cater to the underserved MSME segment.

Strategic Collaborations and Partnerships

FlexiLoans has established over 150 ecosystem partnerships to enhance its market reach and service offerings:

• E-commerce Platforms: Collaborations with Amazon, Flipkart, Nykaa, and Myntra to provide financing solutions to their sellers and vendors.

• Point-of-Sale Providers: Partnerships with companies like Pine Labs and MSwipe to offer loans against POS transactions.

• Financial Institutions: Co-lending arrangements with banks and NBFCs to expand lending capacity and reach.

Operational Insights

FlexiLoans' strategic use of technology and data analytics has enabled it to maintain a low credit cost, around 3