FlexiLoans, a leading digital lender focused on MSMEs, has raised ₹665 crore in six months, with British International Investment (BII) joining as a new investor. The fintech aims to scale operations, boost tech capabilities, and expand into insurance and secured lending, strengthening its mission to drive financial inclusion across India.
In this article, we’ll explore how fintech lender FlexiLoans is capitalizing on institutional capital to scale its operations, strengthen technology, and support India’s underserved MSMEs.
Credits: Ascendants
BII Joins as FlexiLoans Extends Series C
In a notable development for India’s fintech lending landscape, FlexiLoans has raised ₹375 crore ($44 million) in an extended Series C round, pushing its six-month capital raise to ₹665 crore ($78 million). This round saw participation from existing investors—Fundamentum, Accion Digital Transformation Fund, Nuveen, and Maj Invest—while the UK government’s development finance institution, British International Investment (BII), joined as a new backer.
The funding includes both primary equity to fuel business growth and secondary transactions that offer exits to early investors.
Capital Deployment Strategy: Tech, Expansion, and Insurance
FlexiLoans plans to deploy this capital in five strategic areas:
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Scale AUM: Aims to grow assets under management to over ₹5,000 crore within 18–24 months.
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Boost Technology: Strengthen AI-driven credit underwriting and alternative data models.
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Expand Secured Lending: Focus on supply chain and vendor financing.
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Insurance Distribution: Enter this space via an IRDAI corporate agency license.
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Tier II/III Growth: Enhance reach in non-metro areas, a key target segment.
FlexiLoans: Empowering MSMEs Since 2016
Founded by Deepak Jain, Ritesh Jain, and Manish Lunia, FlexiLoans is a digital-first NBFC that supports MSMEs through unsecured and embedded finance offerings. Its proprietary tech stack leverages non-traditional data sources like e-commerce and digital payments to underwrite and disburse loans rapidly—often within 48 hours.
FlexiLoans has built partnerships with over 25 co-lenders and 150+ platforms across payments and e-commerce, helping it service 15,000+ pin codes across the country.
Rapid Business Growth Despite Profit Dip
Between FY23 and FY24, FlexiLoans’ revenue surged 2.4x to ₹262.9 crore, but net profit dipped 50% to ₹3.03 crore. The decline was attributed to increased provisioning and tech investments—suggesting a future-oriented strategy. Notably, the company has remained profitable for two consecutive years, a rare feat among fast-growing fintechs.
As of 2025, FlexiLoans has:
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Disbursed over ₹10,000 crore in loans
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Reached 2,100+ towns and cities
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Built an AUM of ₹2,300 crore
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Extended 66% of loans to Tier II/III towns
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Directed 10% of its loan book to women-led businesses
Investor Confidence and Inclusive Vision
BII’s investment underscores confidence in FlexiLoans’ commitment to responsible, inclusive growth. According to BII, the move aligns with its $2.6 billion India portfolio focus areas, including financial services, climate resiliency, and infrastructure.
Co-founder Deepak Jain stated:
“This fundraise underscores investor confidence in our digital-first, responsible lending model. We are focused on scaling profitably and sustainably while deepening support for India’s MSME sector.”
A Sector Poised for Disruption
India’s MSMEs, which contribute 30% to GDP, face a staggering ₹20 lakh crore credit gap. As traditional banks remain conservative, FlexiLoans and similar fintech-NBFC hybrids are emerging as vital enablers of growth. The company’s focus on productive, secured lending is especially relevant amid the RBI’s tighter norms for unsecured loans.
Looking Ahead: IPO Ambitions and Diversification
FlexiLoans is eyeing an IPO around FY28, with plans to double or triple AUM and expand its offerings to include:
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Asset-backed loans
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Insurance products
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Embedded finance integrations
The company is positioning itself as a leading force in bridging the credit gap in Bharat through scalable, sustainable models.
Credits: Marca Money
Conclusion
FlexiLoans’ latest capital raise highlights its emergence as a powerful player in the fintech lending space. With a strong tech backbone, mission-driven leadership, and backing from global institutions like BII, the company is poised to play a pivotal role in democratizing credit access across India.
