FlexiLoans crosses Rs 3,000 crore AUM, serves 70,000+ MSMEs

MUMBAI: India’s small businesses are getting a bigger slice of the formal credit pie. Digital NBFC FlexiLoans has crossed Rs 3,000 crore in assets under management (AUM), while serving more than 70,000 MSMEs across over 11,000 pincodes, towns and cities in the country.

The lender said 62 per cent of its borrowers come from Tier 2, Tier 3 and Tier 4 markets, highlighting the growing role of digital lending in taking formal credit beyond India’s major urban centres.

Since its inception, FlexiLoans has processed nearly 2 crore loan applications and cumulatively disbursed more than Rs 13,000 crore through a network of over 100 active lending partners.

A significant share of FlexiLoans’ customers are first-time business loan borrowers, with fresh applications accounting for around 70 per cent of its loan demand. Top-up or repeat borrowing accounts for the remaining 30 per cent.

Women entrepreneurs make up more than 11 per cent of the company’s active borrower base, with FlexiLoans continuing to focus on expanding access to credit for this segment.

Loans above Rs 1 lakh accounted for nearly 74 per cent of disbursements, while top-up loans made up the remaining 26 per cent.

Ready-made garments emerged as the largest industry by loan count, with 8,827 loans. Maharashtra led the states, both by the number of loans disbursed and by value, with 15,270 loans and nearly Rs 966 crore in gross disbursements.

The milestone comes against a backdrop of strong growth in India’s MSME lending market. According to CareEdge Ratings, NBFC MSME AUM is expected to cross Rs 5.3 lakh crore by FY26, with the segment growing at more than 25 per cent through FY25 and FY26.

NBFCs have also emerged as a fast-growing source of MSME credit. Between FY21 and FY24, NBFC lending to MSMEs grew at a 32 per cent compound annual growth rate, ahead of private banks at 20.9 per cent and public sector banks at 10.4 per cent.

MSMEs contribute around 30 per cent to India’s GDP and account for more than 45 per cent of exports, while employing over 20 crore people, according to government estimates.

Despite increasing formalisation and digitisation, the MSME credit gap remains above Rs 25 lakh crore, creating significant room for digital-first lenders.

FlexiLoans co-founder Ritesh Jain said the Rs 3,000 crore AUM milestone reflects the company’s focus on expanding formal credit access among underserved small businesses, particularly in smaller markets.

The company uses alternative data and proprietary risk models to assess businesses beyond conventional credit metrics. Its fully digital, cash-flow-based underwriting model enables loan approvals within 24 to 48 hours.

For its next phase of growth, FlexiLoans plans to strengthen its embedded finance ecosystem, expand distribution partnerships and develop credit products tailored to India’s small business community.

With digital adoption accelerating across smaller towns and cities, the lender is betting that faster, technology-led credit can help turn India’s vast MSME financing gap into its next growth opportunity.