The overall round includes a fundraising worth $28 million led by Danish firm MAJ Invest, while debt and parts of equity were raised from UK investment firm Fasanara Capital. The family office of Sanjay Nayar, who led KKR in India for more than a decade, the Hong Kong-based Banga family and Alliance Tire Group founder Yogesh Mahansaria also invested as part of the increase in capital.
The investment will mark Fasanara’s first transaction in the Indian tech space.
According to the company, it plans to use the capital to focus on technology development and to double its loan portfolio through its colending, buy it now and pay later (BNPL) services and its blockchain finance platforms. supply. The startup will also continue to invest in technology and strengthen aspects of client automation, risk management, and analytics capabilities.
Asialink Advisors, founded by Anjani Kumar, former director of CIMB India Investment Banking, and
were the advisers to the transaction.
Founded in 2016 by Indian School of Business alumni Deepak Jain, Ritesh Jain and Manish Lunia and IIT Bombay alumnus Abhishek Kothari, FlexiLoans is an integrated financing platform with more than 120 partners, including e-commerce giants like Amazon, Flipkart,
, Myntra and others. It helps to provide financing to sellers or sellers of these e-commerce platforms.
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“We are currently disbursing over Rs 100 crore in loans per month and expect to double that execution rate over the next year, with our co-lending platform contributing a significant portion of the growth,” the co-founder said. Deepak Jain in an interaction with ET.
The Mumbai-based startup claims to have disbursed over Rs 1,700 crore in MSME loans so far to traders in over 1,600 Indian cities.
The platform is now aiming to roll out Rs 1,500 crore to Rs 1,800 crore in loans over the next 12 months. Much of its loan portfolio comes from disbursements to small businesses in Tier 2 and Tier 3 cities.
The company is also looking to grow inorganically through acquisitions.
“We are also considering acquisitions in areas that will help us grow. We want to continue to be a digital lender for MSMEs and any startup that helps us grow in this segment will be of interest to us,” Deepak Jain said of the acquisitions.
The fintech startup previously raised just over $20 million in equity and debt in October 2020, led by Falguni and family office Sanjay Nayar.
The company currently claims to record an annualized rate of return (ARR) of Rs 100 crore and currently has an active loan book of Rs 500 crore, Jain said.