FlexiLoans, a fintech company focused on providing financial solutions for micro, small, and medium enterprises (MSMEs), has successfully raised $9 million in debt funding from JM Financial. This marks the second debt round for the Mumbai-based company this year. The funds, raised through the issuance of non-convertible debentures, will be utilized to support ongoing business operations and extend collateral-free loans to MSMEs across India. This latest funding round comes as FlexiLoans is set to secure an additional $35 million in funding from late-stage fund Fundamentum.
Strengthening Financial Support for MSMEs
FlexiLoans has been at the forefront of providing financial support to MSMEs, a sector that is often underserved by traditional financial institutions. The company’s innovative approach to lending has enabled it to disburse over INR 7,000 crore in loans to date. By offering collateral-free loans, FlexiLoans has made it easier for small businesses to access the funds they need to grow and thrive. The recent debt funding from JM Financial will further strengthen the company’s ability to support MSMEs.
The issuance of 7,500 non-convertible debentures with a coupon rate of 12.05% per annum and a tenure of 24 months demonstrates the confidence that investors have in FlexiLoans’ business model. The funds will be used to enhance the company’s lending capacity and expand its reach to more MSMEs. This is particularly important as the demand for financial support continues to grow in the wake of economic challenges.
FlexiLoans’ commitment to empowering MSMEs is evident in its partnerships with over 400 entities. These partnerships have enabled the company to extend its territorial reach and provide financial solutions to a wider audience. By leveraging technology and data-driven insights, FlexiLoans is able to offer client-centric financial solutions that meet the unique needs of MSMEs.
Robust Growth and Profitability
FlexiLoans has demonstrated robust growth and profitability in recent years. The company’s operating revenue surged to INR 262 crore in FY24 from INR 109 crore in FY23, reflecting a year-on-year growth of 2.4 times. This impressive growth trajectory is a testament to the effectiveness of FlexiLoans’ business model and its ability to meet the needs of its clients. The company has also maintained profitability, with a profit after tax of INR 3 crore for the period.
The fintech firm’s success can be attributed to its innovative lending solutions and strong strategic tie-ups. FlexiLoans offers loans ranging from INR 50,000 to INR 1 crore with a maximum tenure of 36 months. This flexibility allows the company to cater to the diverse financial needs of MSMEs. Additionally, FlexiLoans lends through its own non-banking financial company (NBFC) arm, Epimoney, further enhancing its lending capabilities.
FlexiLoans’ ability to compete with other fintech firms such as Lendingkart, Indifi, Incred, Oxyzo, and Aye Finance is a testament to its strong market position. The company’s focus on providing tailored financial solutions and its commitment to customer satisfaction have helped it carve out a niche in the competitive fintech landscape.
Future Prospects and Strategic Investments
The recent debt funding from JM Financial is a significant milestone for FlexiLoans, as it prepares to secure an additional $35 million in funding from Fundamentum. This upcoming investment, co-founded by Infosys veteran Nandan Nilekani, is a strong endorsement of FlexiLoans’ business model and its potential for long-term growth. The funds will be used to further expand the company’s lending capacity and support its growth initiatives.
FlexiLoans’ strategic investments in technology and data analytics have played a crucial role in its success. By leveraging these tools, the company is able to offer personalized financial solutions that meet the specific needs of its clients. This focus on innovation has enabled FlexiLoans to stay ahead of the competition and continue to grow its market share.
Looking ahead, FlexiLoans is well-positioned to capitalize on the growing demand for financial solutions in the MSME sector. The company’s commitment to empowering small businesses and its focus on innovation will continue to drive its growth and success. With the support of its investors and strategic partners, FlexiLoans is poised to make a significant impact in the fintech industry.
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