India: KKR Sanjay Nayar-backed FlexiLoans eyes SE Asia foray, M&As

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(L-R) Manish Lunia, Abhishek Kothari, Ritesh Jain & Deepak Jain; co-founders, FlexiLoans

FlexiLoans Technologies Pvt Ltd, a technology-based online financing platform, plans to expand its footprint outside India by end of this year, a top company executive told DEALSTREETASIA.

“We are working on establishing our model in India and doing a lot of data analytics. Once we are done with it, we plan to expand our footprint in Southeast Asia,” said Manish Lunia, one of the founders of FlexiLoans adding that fintech is hot in these countries.

Founded in 2016 by chartered accountants Manish Lunia, Ritesh Jain, Deepak Jain and IIT Bombay alumus Abhishek Kothari, FlexiLoans aims to provide its services to underserved SMEs and consumers in India. It has so far processed over 5,000 loans with a ticket size ranging from Rs 20,000 – Rs 75 lakh.

FlexiLoans is backed by veteran bankers like Sanjay Nayar, CEO of KKR India; Anil Jaggia, former CIO, HDFC Bank; Vikram Sud, former head of operations & technology Citibank Asia-Pac and Narayan Sheshadri, former managing partner of KPMG.

Having $15 million in its pocket, the company is also looking to acquire smaller companies in the similar space. In the next 2-3 months, it will deploy the remaining funding for lending and marketing activities.

“We meet lots of players in the market. We are always open for acquisition of companies which can provide technology innovation, give customers faster access and add to our products,” said Lunia.

Without disclosing the name of the company, he further said, “we are in initial talks to acquire a very small startup in the space whose founders are not able to scale it up further.”

The company has developed machine learning-based risk models that score customers based on a digital footprint and other non-financial surrogate data. To strengthen its position as leaders in true digital lending, the company has four patentable technologies to minimize processing costs and friction from customer application to loan disbursal.

The company claims to grow at 15x times and has partnered with Flipkart, SnapDeal, PayTM, Shopclues, Voonik, Jabong, Lime Road, Uber and Ola.

The company is looking to target the micro, small and medium enterprise (MSME) sector enterprises across various industries. The MSME sector accounts for 45 per cent of Indian industrial output and 40 per cent of exports while most of the sector is un-organised (approximately 94 per cent), informal and un-registered, according to a KPMG report.

The MSMEs are faced with limited access to financial resources, lack of infrastructure support and inadequate linkages to domestic and global markets, the report said.

In the similar space, last year in October, fintech startup Lendingkart Group acqui-hired KountMoney, an online lending marketplace for personal loans, to boost its technology and data analytics capabilities.

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