FlexiLoans, a fintech lender that specializes in MSMEs, has raised Rs 60 crore from Vivriti Asset Management through non-convertible debt. The Mumbai-based company has been without new funding for about 20 months.
According to the company’s regulatory filings with the Registrar of Companies, the board of FlexiLoans has approved a special resolution to issue 6,000 non-convertible debentures (NCDs) at an issue price of Rs 1,00,000 per debenture for consideration of Rs 60 crore in one or more tranches.
As part of the first tranche, the Vivitri Emerging Corporate Bond Fund (Vivriti Asset Management) has already given the company Rs 30 crore.
The debt has a 31-month term and an annual interest rate of 12.9%. The money will be used by the company to support its continuing operations.
Through its digital lending platform, FlexiLoans, founded by Deepak Jain, Manish Lunia, Ritesh Jain, and Abhishek Kothari, gives MSMEs access to funds without the need for collateral. Utilizing in-house technology and risk models, the business scores clients and approves loans in less than 48 hours.
More than 120 businesses have partnered with FlexiLoans, including Amazon, Flipkart, Pine Labs, BharatPe, and Mswipe.
With debt and equity, FlexiLoans has raised more than $115 million to date. It raised $90 million in June 2022 in its Series B round, which included a mix of debt and equity from Fasanara Capital, MAJ Invest, and the family office of Caravel Group chairman Harry Banga, in addition to current investors like Sanjay Nayar.
From Rs 51.5 crore in FY22 to Rs 108.5 crore in FY23, FlexiLoans’ operating revenue increased by 110.7%. Loan processing fees, interest on loans, and other financial charges are how the business makes money.
