Flexiloans is a fintech startup that helps small and medium enterprises raise working capital loans at a time when banks conventionally shy away from placing their bets on SMEs.
FlexiLoans, a digital SME lending startup has disbursed over 2,500 loans with an average ticket size of around Rs 5-10 lakh and has a target of disbursing 10,000 loans in all by end of March 2019.
Flexiloans is a fintech startup that helps small and medium enterprises raise working capital loans at a time when banks conventionally shy away from placing their bets on SMEs.
“Industry for fin-tech based SME loans has grown by over 10x in last 3 years. We see a very healthy growth rate to continue for next few years given the huge unserved and under-served market with a CAGR of over 50 percent over the next five years,” Deepak Jain, co-founder of FlexiLoans told Moneycontrol in an interaction.
The company was founded by four Indian School of Business classmates Deepak Jain, Abhishek Kothari, Ritesh Jain and Manish Lunia.
Since most of these small enterprises do not have sufficient data or credit score, FlexiLoans offers them loans on the basis of their POS transactions, among other details.
“We are focused on retailers, traders, and distributors. Majority of our loans are in the electronics, fashion, FMCG (kirana stores) and services sectors. Our average ticket size is in the Rs 5 -10 Lakh range,” Jain said.
The company recently raised Rs 45 crore as venture debt from financial institutions. It also raised seed funding of Rs 100 crore from angel investors including Sanjay Nayar, CEO, KKR India, Anil Jaggia, former CIO, HDFC Bank and Vikram Sud, former head of operations and technology, Citibank.
Other startups who are in the SME lending space include names like Lendingkart, Aye Finance and Capital Float. While Lendingkart recently raised USD 87.8 million funding from Fullerton Financial, Saama Capital, Bertelsmann India Investments and others, Aye Finance has raised USD 3.87 million of venture debt from Hinduja Leyland Finance and IntelleGrow.
Capital Float, on the other hand, has raised USD 45 million funding from SAIF Partners, Sequoia Capital and others.
