UK’s BII Joins Existing Investors as FlexiLoans Raises ₹665 Crore in Six Months

Fintech-focused lender FlexiLoans has raised ₹375 crore ($44 million) in an extended Series C funding round, taking its total fundraise to ₹665 crore ($78 million) over the past six months. The round was led by existing backers Fundamentum, Accion Digital Transformation Fund, Nuveen, and Maj Invest, while British International Investment (BII), the UK’s development finance institution, came on board as a new investor.

Funding Structure: Equity and Liquidity Boost

The latest funding includes primary equity investments aimed at fueling business expansion and product innovation, along with secondary transactions to provide liquidity for early investors. The company previously raised ₹290 crore in September 2024.

Past investors include Sanjay and Falguni Nayar, Fasanara Capital, and multiple family offices with banking sector backgrounds.

Capital Will Fuel Expansion, Tech, and Lending Capacity

FlexiLoans said the fresh capital would be deployed to:

• Grow its Assets Under Management (AUM) to over ₹5,000 crore in the next 18-24 months.
• Strengthen its technology stack, particularly for data-driven credit underwriting.
• Expand secured lending products, such as supply chain and vendor financing.
• Enter the insurance distribution space through an IRDAI corporate agency licence.
• Enhance reach in underserved regions, especially tier II and III towns.

Company Overview: Fintech Lender Empowering MSMEs

Founded in 2016 by Deepak Jain, Ritesh Jain, and Manish Lunia, FlexiLoans provides digital loans to underserved micro, small, and medium enterprises (MSMEs). It offers unsecured working capital, term loans, and supply chain financing through its NBFC and embedded finance partners.

Its proprietary tech platform leverages alternative data from e-commerce platforms, payments, and other digital sources, enabling loan approvals within 48 hours.

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Business Performance: Rapid Growth Amid Digital Shift

As of 2025, FlexiLoans has:

• Disbursed ₹10,000+ crore in loans across 2,100+ towns and cities.
• Built an AUM of ₹2,300 crore.
• Achieved a CAGR of 83% from FY22 to FY25.
• Supported over 50,000 MSMEs via 1.7 lakh+ loans.
• Extended 66% of loans to tier II/III regions, with 10% of the loan book to women-led enterprises.

Revenue and Profitability Trends

According to startup data platform TheKredible, FlexiLoans witnessed a 2.4X rise in revenue, jumping to ₹262.9 crore in FY24 from ₹108.5 crore in FY23. However, its net profit declined by 50% to ₹3.03 crore, mainly due to increased provisioning and tech investments. Despite this, FlexiLoans has remained profitable for two consecutive fiscal years, a rare feat among high-growth fintechs.

Strategic Partnerships Driving Distribution

FlexiLoans has built a vast partner ecosystem:

• Over 25 co-lending and NBFC partners.
• More than 150 strategic alliances across e-commerce, POS, and payments platforms.
• Embedded finance partnerships that allow real-time lending integration.

These collaborations have helped the company service 15,000+ pin codes across India, especially in digitally underserved areas.

Investor Perspective: Supporting Inclusive Growth

New investor BII stressed that it fits well with FlexiLoans’ mission to promote financial inclusion. BII’s India portfolio is over $2.6 billion, focusing on sectors such as financial services; renewable energy; infrastructure; and, lastly, climate resiliency.

Speaking on the investment, Deepak Jain, Co-founder of FlexiLoans, said:

“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.”

Industry Context: MSME Credit Gap Presents Opportunity

India’s MSME sector contributes about 30% to the GDP, yet it faces a credit gap exceeding ₹20 lakh crore, according to SIDBI. As traditional banks remain conservative, fintech-NBFC hybrids like FlexiLoans are emerging as crucial enablers of small business growth.

Moreover, with the RBI tightening norms for unsecured personal loans, institutional capital is flowing toward secured, productive lending to MSMEs, a segment where FlexiLoans has proven traction.

Future Outlook: IPO and Product Diversification

FlexiLoans is searching towards an IPO potentially happening around FY28, looking to accomplish its 2X-3X AUM growth plans and develop product offerings that include asset-backed lending products, insurance and more embedding finance products too. In summary, FlexiLoans are in good shape combining sound underwriting, operational capabilities and a focus on mission enables the company to aspire to be a big player in bridging financial inclusion in India.

Conclusion

FlexiLoans’ positive capital raise signifies a watershed moment for the Indian fintech lending industry. FlexiLoans is now in a position to truly empower MSMEs and further financial inclusion in Bharat, with the backing of real institutional capital, an identifiable growth model, and a strong tech ecosystem.

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