FlexiLoans.com, a leading digital SME lending startup has announced its maiden institutional debt fund of Rs 45 crore from financial institutions.
The funding will be use to expand its proprietor loans and supply chain financing segment.
The fundraise will primarily be used to fund the data driven micro and small loans to SMEs present across India. FlexiLoans.com intends to expand the reach to provide working capital loans to proprietors in 500 cities from the existing 175 cities and 26 states that it currently services.
Ritesh Jain, cofounder of FlexiLoans.com, said, “Proprietors across the country have discovered a new way to get funds on tap from the product suite we offer. We will utilize these funds to expand our instant Proprietor Loans and Supply Chain Financing product suite. These funds that were raised at extremely competitive terms from leading financial institutions is symbolic of the growth trajectory and quality that we have.”
The website FlexiLoans.com and its mobile app gets over 4000 applications a month largely from tier 2,3 and 4 cities in India. FlexiLoans.com's data led algorithms and credit underwriting process allows the deserving borrowers to get their loans sanctioned within 48 hours. Proprietor loans to merchants who have card machines or are ecommerce merchants across any platform in the country can access the unique product offerings that the lending platform brings through its 60 national partnerships.
India has over 3 million merchants using POS machines, 1 million ecommerce sellers and over 4 million people filing GST returns, who can be tapped immediately using digital cashflow based lending - a potential severely left untapped even now by large banks and NBFCs.
FlexiLoans.com founded by four ISB classmates, Deepak Jain, Abhishek Kothari, Ritesh Jain and Manish Lunia had raised the largest ever seed fund round of about $15 million (Rs 100 crore) last year from marquee investors including Sanjay Nayar, the CEO of KKR India; Anil Jaggia, Vikram Sud, and Narayan Seshadri. It has hired senior professionals to aid its fintech, data science, products and operations teams create growth over the last year. It also acquired the supply chain lending platform, Creditperiod.com, earlier this year to expand the supply chain product segment of the fintech company.