MSME focused lending firm FlexiLoans raises $9 million debt: Report

FlexiLoans, a Mumbai-based financing firm focused on micro, small, and medium enterprises (MSMEs), has reportedly raised Rs 75 crore through a non-convertible debt issuance. 

According to Entrackr, which first reported the development, the debt round was led by JM Financial.

Details of the debt issuance

The report said the company's board has approved the issuance of 7,500 non-convertible debentures (NCDs) to raise the capital.

The NCDs carry a coupon rate of 12.05% per annum and have a tenure of 24 months.

The financing firm is expected to use the raised capital to support the ongoing business operations, particularly in extending collateral-free loans to MSMEs across India, the report added.

Planning to raise $35 million

The development comes a week after ET report suggested that FlexiLoans is in discussions with both global and domestic investors to raise approximately Rs 300 crore (or $35 million) through an equity round.

The report mentioned that Accion, a U.S.-based nonprofit focused on financial inclusion, and Fundamentum, co-founded by Infosys' Nandan Nilekani, could potentially participate in this round.

The funding round is expected to increase the company's valuation from Rs 700 crore to Rs 1,200 crore.

Who are the founders?

Founded by Deepak Jain, Manish Lunia, Ritesh Jain, and Abhishek Kothari, FlexiLoans is a leading firm that provides business loans .

So far, the company has raised over $148 million in a mix of equity and debt financing from prominent investors such as Fasanara Capital, MAJ Invest, Vivriti Asset Management, and Caravel Group.

It claims to have disbursed loans exceeding Rs 7,000 crore and has served in over 2,100 cities.

FlexiLoans has shown strong financial performance, with operating revenue surging to Rs 262 crore in FY24 from Rs 109 crore in FY23. The firm also maintained profitability with a profit after tax of Rs 3 crore during this period.