FlexiLoans, a prominent fintech lender specializing in collateral-free loans for MSMEs, has successfully raised Rs 75 crore (approximately $9 million) through non-convertible debt from JM Financial. This marks the company’s second debt financing round of the year.
According to internal documents reviewed by Entrackr, FlexiLoans’ board has authorized the issuance of 7,500 non-convertible debentures to secure the Rs 75 crore funding. The debt carries a coupon rate of 12.05% per annum and has a tenure of 24 months. The funds are intended to support the company’s ongoing business operations.
This fresh infusion of debt comes as FlexiLoans is on the brink of finalizing a significant $35 million funding round from late-stage investor Fundamentum, which was co-founded by Infosys veteran Nandan Nilekani.
Founded by Deepak Jain, Manish Lunia, Ritesh Jain, and Abhishek Kothari, FlexiLoans provides unsecured loans to MSMEs and has raised over $124 million to date through various equity and debt rounds. Notably, the company secured $90 million in a Series B round in June 2022, with investors including Fasanara Capital, MAJ Invest, and Caravel Group.
FlexiLoans has disbursed more than Rs 7,000 crore in loans since its inception. The company collaborates with over 400 partners and operates through its NBFC, Epimoney. It offers loans ranging from Rs 50,000 to Rs 1 crore, with a maximum tenure of 36 months.
The company has demonstrated impressive growth in the fiscal year ending March 2024, with its collections increasing 2.4 times year-on-year. Its operating revenue surged to Rs 262 crore in FY24, up from Rs 109 crore in FY23, while maintaining profitability with a PAT of Rs 3 crore.
FlexiLoans faces competition from other fintech firms such as Lendingkart, Indifi, Incred, Oxyzo, and Aye Finance, as it continues to expand its footprint in the MSME lending space.
