FlexiLoans Raises INR 375 Crore in Series C Round to Boost MSME Lending

Entrepreneur

11-06-2025

he round was led by existing investors including Fundamentum, Accion Digital Transformation Fund, Nuveen, and Maj Invest, while British International Investment (BII), the UK's development finance institution, joined as a new backer
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Digital lending platform FlexiLoans has raised INR 375 crore in fresh equity funding as part of its Series C round, according to a press release issued by the company. The latest tranche adds to the INR 290 crore raised in September 2024, taking the total capital infusion to INR 665 crore over the last six months.
The round was led by existing investors including Fundamentum, Accion Digital Transformation Fund, Nuveen, and Maj Invest, while British International Investment (BII), the UK's development finance institution, joined as a new backer. The investment mix includes both primary capital to drive operational expansion and secondary transactions that provided liquidity to early investors.
Founded in 2016 by Deepak Jain, Ritesh Jain, and Manish Lunia, FlexiLoans operates as a digital-first NBFC focused on serving India's underserved MSME sector. The firm said the fresh funds will be used to scale operations, broaden its suite of credit products, and strengthen its technology platform aimed at small businesses, particularly in non-metro areas.
Less than 10 per cent of the estimated 60 million MSMEs have access to formal credit. FlexiLoans targets this credit gap, with 66 per cent of its loan book spread across Tier II and Tier III cities. "We are pleased to have secured an additional INR 375 crores from our existing investors and are proud to welcome BII to our cap table," said Deepak Jain, co-founder of FlexiLoans. "This round not only enabled us to return capital to our early investors, but also gives us the firepower to double down on our mission—empowering underserved MSMEs across India with fast, accessible financing to grow, scale, and thrive."
FlexiLoans operates without physical branches, using a fully digital infrastructure to approve and disburse loans—often within 48 hours—by leveraging alternative data and digital partnerships. The firm has disbursed over INR 10,000 crore across more than 2,100 towns and cities. Its current assets under management (AUM) stands at INR 2,300 crore, with a compound annual growth rate (CAGR) of 83 per cent from FY22 to FY25.
Srini Nagarajan, managing director and head of Asia at BII, said: "We are delighted to support FlexiLoans in their mission to empower MSMEs across India with its innovative digital-only model. Financial inclusion is a key part of our strategy, and this investment underscores our commitment to supporting underserved businesses and entrepreneurs."
Unitus Capital acted as the exclusive advisor to the transaction.