Fintech Startup FlexiLoans Bags $9 Mn Debt from JM Financial

Neha KamathAugust 19, 2024

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Three points you will get to know in this article:

JM Financial provides INR 75 Cr (about $9 Mn) debt to FlexiLoans via the non-convertible debentures.
To offer 7,500 senior secured unlisted redeemable NCDs with a face value of INR 1 lakh each.
This fund raise comes after the Rs 60 Cr debt financing round completed in February.

FlexiLoans Secures 75 Cr ($9 Mn) Debt from JM Financial, Second Such Fund Raise in 2024

Through the offering of non-convertible debentures (NCDs), fintech startup FlexiLoans has acquired debt capital of INR 75 Cr (about $9 Mn) from JM Financials Limited.

According to regulatory filings, the board of FlexiLoans issued a special resolution authorizing the company to offer up to 7,500 rated senior, secured, unlisted, transferable, redeemable NCDs with a face value of INR 1 Lakh each in order to raise up to INR 75 Cr in one or more tranches.This capital raise comes after the company’s first one in February, when $7.23 million was raised through debt financing.

How Has Fund Raising Been for Flexiloans So Far?

Abhishek Kothari, Deepak Jain, Manish Lunia, and Ritesh Jain founded Flexiloans, an online lending platform, in 2016 with the goal of providing quick and flexible loans to small and medium-sized businesses (SMEs) and other underserved areas.

During its Series B investment round in 2022, FlexiLoans raised $90 million via a combination of debt and equity financing from existing investors such Sanjay Nayar, UK-based Fasanara Capital, Denmark-based MAJ Invest, and the family offices of Harry Banga and Yogesh Mahansaria.

Since its founding, the Mumbai-based company has raised around $148 million (around INR 1230 Cr) in venture and loan capital from its network of investors.

This comes at a time when investors are becoming more interested in India’s fintech industry.

Indian Fintech Sector Is Moving Rapidly

For example, in June, through a combination of primary and secondary deals, the lending tech startup Fibe raised $90 Mn (about INR 750 Cr) in its Series E fundraising round headed by TR Capital, Trifecta Capital, and Amara Partner.

Additionally, according to the fintech startup’s regulatory filings, Bengaluru-based “slice” raised $20 Mn (about INR 170 Cr) in a debt investment round from Neo Asset Management’s Credit Opportunities Fund.

In the meantime, to increase the amount of assets under management and broaden its presence in India, non-banking financial corporation (NBFC) Arthan Finance raised INR 50 Cr ($5.98 Mn) as part of its Series B funding round, which was led by Incofin India Progress Fund.