FlexiLoans secures Rs 290 crore from international and domestic investors
Digital lending platform FlexiLoans has raised Rs 290 crore in Series C funding from international and domestic investors including Nandan Nilekani (co-founder of Fundamentum), Accion, a US-based non-profit, Nuveen and existing investor Maj Invest.
FlexiLoans, which provides loans to small businesses through a cash flow-based lending model, will use the new capital to expand its operations, enhance its product offering and strengthen its technology infrastructure, the company said in a press release.
The fresh capital will help the company grow its assets under management (AUM) from Rs 2,000 crore currently to Rs 3,500 crore. Till date, FlexiLoans has disbursed over Rs 7,000 crore worth of loans across over 2,100 cities and towns.
“As an NBFC, we will continue to raise funds as and when required, but this capital should be enough to grow to Rs 3,500 crore in AUM,” said Deepak Jain, co-founder, FlexiLoans.
The company aims to provide approximately Rs 50 billion in loans by FY 2025.
In the next 3-4 years, the company could go public, Jain said. “We want to do it at the right time, when we have achieved the right size and scale,” he said, adding that the company has been profitable for the last three years and is targeting double-digit profits in the current financial year and triple-digit profits in the next financial year.
“Our credit cost is around 3.3 percent in the June quarter. We have always been below 5 percent on credit cost,” he said.
Unitus Capital acted as exclusive advisor on the transaction.
Prior to this funding round, the company raised capital from Sanjay and Falguni Nayar, Maj Invest, Fasanara Capital and other leading family offices.
First publication: Sep 11, 2024 | 12:14 AM IST