FlexiLoans secures $34.5m in Series C led by Accion, Nuveen & Fundamentum

By Gloria Mathias

FlexiLoans.com, India’s MSME-focused digital lending NBFC, has announced an equity raise of $34.5 million (₹290 crore) in its Series C funding round. The round was led by global and domestic investors Accion, Nuveen, Fundamentum, and existing investor Maj Invest.

The firm will use the fresh capital to expand its operations, enhance its product offerings, and strengthen its technological infrastructure. This capital infusion will empower the firm to further its mission of fuelling the growth of MSMEs across India, driving financial inclusion, and unlocking new economic opportunities.

India’s SME sector, which contributes about 30% to the country’s GDP, remains significantly underserved. Less than 10% of MSMEs have access to loans from traditional financial institutions, leaving a vast capital gap. The firm aims to bridge this gap, particularly in tier 2 and tier 3 cities where access to finance is limited.

Founded in 2016 by Deepak Jain, Ritesh Jain, and Manish Lunia, it focuses on underserved MSMEs in India. With its fully digital platform, it has simplified access to capital, enabling small businesses across tier 2 and 3 cities to receive loan approvals in as little as 48 hours by leveraging alternative data sources.

This digital-first approach has democratized access to financial resources for millions of micro and small entrepreneurs who lack conventional credit histories and are typically excluded from traditional lending systems. FlexiLoans’ strategic partnerships with e-commerce platforms, payments tech, food tech and other merchant ecosystems have been pivotal in amplifying its reach and enhancing its ability to underwrite risk.

To date, FlexiLoans has disbursed over ₹7,000 crore in loans across more than 2,100 towns and cities and boasts an AUM of over INR 2,000 crore.

Deepak Jain, Co-founder of FlexiLoans, said, “We are pleased to have secured ₹290 crores in our Series C round from such global blue-chip private equity funds who resonate with our vision to empower MSMEs across India. With this capital, we will further our mission of driving financial inclusion, expanding our reach, and enabling more underserved MSME businesses to access the funds they need to grow and succeed.”

Nethra Bhat, Partner, Asia, Accion Digital Transformation, said, “FlexiLoans is connecting MSMEs across India to working capital so they can better serve their customers. They understand the Indian digital MSME space and their customer’s needs and have a strong tech platform. We’re excited to lead this round of equity investment to support their growth.”