FlexiLoans raised INR 75 Cr Debt For Fintech Expansion
Summary
Fintech lender FlexiLoans, specializing in collateral-free loans for MSMEs, has successfully reported raising INR 75 crore (approximately $9 million) in the form of non-convertible debentures (NCDs) from JM Financial. This has marked the Mumbai-based companys second debt round this year while reinforcing its commitment to expanding financial support for under-resource-seeking small and medium enterprises.The concerned board at FlexiLoans has already passed a resolution stating to issue 7,500 secured, unlisted NCDs, each valued at INR 1 lakh, with a 12.05% annual coupon rate and a 24-month lock-in period. Considering the year 2022, FlexiLoans raised $90 million through a Series B funding round, involving a combination of equity and debt from investors like MAJ Invest and Fasanara Capital.Regarding the latest debt infusion, FlexiLoans is reportedly set to secure an additional $35 million from late-stage fund Fundamentum, co-founded by Infosys veteran Nandan Nilekani. The company has shown tremendous financial performance, with its operating revenue soaring over INR 262 crore in FY24, almost a 2.4X increase from the previous year while maintaining profitability with a PAT of INR 3 crore still.The overall capital boost will strengthen FlexiLoans position as a more competitive player in the fintech landscape, among rivals like Lendingkart, Indifi, and Aye Finance. As FlexiLoans continues to perform, its impact in the MSME sector is expected to grow manyfold, giving vital financial support to businesses that drive the Indian economy, especially small-medium enterprises.