SME-focussed FlexiLoans raises funding from KKR India CEO, Nykaa founder, others

By Narinder Kapur

  • 29 Oct 2020
Credit: 123RF.com

FlexiLoans.com, a fintech lender focussed on small and medium enterprises, has raised funding through an equity and debt mix from investors including the family office of Falguni Nayar and husband Sanjay Nayar.

Sanjay Nayar is the chief executive officer of KKR India, the domestic arm of the global private equity giant. Falguni Nayar is the founder of online-to-offline beauty, wellness, and fashion products business Nykaa.

This is also not the first time that Sanjay Nayar has invested in FlexiLoans.com. In October 2016, he was among several veterans of India’s financial services ecosystem to make an investment in the company. Other participants then included Vikram Sud.

In a statement, the platform, run by Flexiloans Technologies Pvt Ltd, said that it has raised Rs 150 crore ($20.2 million). However, it did not disclose the quantum of the equity and debt components.

VCCircle has reached out to the company regarding the same and will update this report accordingly.

Including this latest infusion, FlexiLoans.com says it has raised a total of Rs 500 crore since it was set up in 2016. It also says it has banking relationships with over 13 financial institutions.

This latest capital commitment will help it scale up lending to the micro enterprise and SME segment. It is also looking to grow its supply chain and co-lending verticals, which it claims are witnessing significant growth and traction following the easing of Covid-19-induced lockdown restrictions.

“We chose to accept this bid over other term sheets we had from a few institutional investors, given the long-term nature of this capital,” FlexiLoans.com co-founder Deepak Jain said.

“FlexiLoans.com has one of the strongest fintech platforms with a right mix of strategy, business partnerships and underwriting processes to capitalise on the digital lending opportunity in India,” a spokesperson for Falguni Nayar and Sanjay Nayar’s family office said.

FlexiLoans.com says it has disbursed over 30,000 unsecured loans worth over Rs 800 crore in the last four years. It also claims to have partnerships with e-commerce and other fintech players including Flipkart, Amazon, Pine Labs, and Mswipe.

FlexiLoans.com was founded by four Indian School of Business alumni—Deepak Jain, who was an investment banker at Axis Capital; Manish Lunia, former executive at Aditya Birla Group's M&A unit; Ritesh Jain, former finance chief of Housing.com; and Abhishek Kothari, a data science and analytics professional.

In May 2017, FlexiLoans.com acquired Mumbai-based supply chain financing platform CreditPeriod.com for an undisclosed sum. At the time, Jain said the acquisition would help strengthen its position in serving the supply chain market for the SME ecosystem.