As compared to other startups, Finance technology companies have been able to outperform the slowdown in investments in the current market scenrio in India. With regard to that, FlexiLoans, an online lending platform, has today raised around $15 million(or Rs. 100 crore) in its latest funding round from a group of angel investors.
In the current funding round, the company saw participation from a bunch of marquee investors including Sanjay Nayar, chief executive of KKR India, and Vikram Sud, former head of operations and technology at Citibank.
Other investors who also poured in money includes Anil Jaggia, chief investment officer at HDFC Bank, and Narayan Seshadri, former managing director at KPMG’s advisory business. All the investors have invested in their personal capacity.
As a part of this deal, EpiMoney, a non-banking finance company which was founded by Nayar, Sud and Sheshadri, will be acquiring stake in FlexiLoans which will be the product platform. With the incoming new capital, it is now planning to use the funds to enable FlexiLoans’ expansion and for further investment in its technology and marketing platform.
Commenting on this funding round, Deepak Jain, cofounder of FlexiLoans, said,
This move will propel us to achieve our vision of using new-age technology to provide quick, fast and transparent funding access to millions of deserving entrepreneurs.
FlexiLoans, which has been operational since November last year, was founded by Deepak Jain, Manish Lunia, Ritesh Jain, and Abhishek Kothari. It has since partnered with over 20 national digital marketplaces and organisations such as Flipkart, Ola, ShopClues and Jabong. It is currently serving over 2 million small businesses and has served customers in over 18 cities and towns.
The platform uses several traditional and non-traditional sources of data to score an applicant. Thus, each applicant’s score is unique in keeping with the loan amount and profile of the applicant. As per the company, this proprietary credit engine, clubbed with the application form and ability to make the loan decision within 24 hours is what distinguishes FlexiLoans from traditional credit scoring methods used by other financial institutions.