MSME-focused fintech lender FlexiLoans has secured Rs 75 crore (approximately $9 million) through non-convertible debentures from JM Financial, marking its second debt round this year.
According to internal documents accessed by Entrackr, FlexiLoans’ board approved the issuance of 7,500 non-convertible debentures to raise these funds. The debt carries a coupon rate of 12.05% per annum and a 24-month tenure. The funds are intended to support ongoing business operations.
This debt raise coincides with FlexiLoans’ efforts to secure an additional $35 million in funding from Fundamentum, a late-stage fund co-founded by Infosys veteran Nandan Nilekani.
Founded by Deepak Jain, Manish Lunia, Ritesh Jain, and Abhishek Kothari, FlexiLoans specializes in providing collateral-free loans to MSMEs. To date, the firm has raised over $124 million in a mix of equity and debt, including a $90 million Series B round in June 2022.
FlexiLoans has disbursed over Rs 7,000 crore in loans and offers loans ranging from Rs 50,000 to Rs 1 crore with a maximum tenure of 36 months. The company’s revenue grew significantly in FY24, reaching Rs 262 crore, while maintaining profitability with a PAT of Rs 3 crore. FlexiLoans faces competition from fintech firms such as Lendingkart, Indifi, Incred, Oxyzo, and Aye Finance.