The International Finance Corporation (IFC), a member of the World Bank Group, will invest up to $20 million in Epimoney Pvt Ltd, the parent company of Mumbai-based NBFC FlexiLoans.
By financing FlexiLoans’ growth, IFC aims to empower a larger number of MSMEs to access the capital they need to thrive, the financial institution said in a disclosure on Monday, adding, “The most significant expected Project level outcome is improved access to finance for MSMEs.”
IFC also aims to guide FlexiLoans to enhance corporate governance and assist in improving loan operations and risk management as the business grows, it said in the disclosure.
“IFC’s additionality in the Project is expected to be non-financial. On one hand, IFC intends to provide guidance and support as the Company further institutionalizes its corporate governance. On the other hand, IFC, with the involvement of IFC banking specialist, will help the Company strengthen its loan operation and risk management practices as its business continues to scale.” the disclosure added.
In September, FlexiLoans raised Rs 290 crore in Series C funding from Accion, Fundamentum, Nuveen, and Maj Inves to scale operations and expand its balance sheet through leverage.
With the last round, FlexiLoans’ total funding reached Rs 636 crore in equity and over Rs 2,000 crore in debt.
FlexiLoans offers two primary financial products with an average loan ticket size of around Rs 6 lakh. The first is an EMI-based loan with repayment periods ranging from 12 to 36 months. The second is an invoice financing product, providing short-term credit with repayment terms ranging from 30 to 90 days.
It has disbursed over one lakh loans totalling more than Rs 7,000 crore, reaching over 15,000 Indian pin codes through 100% digital originations without any physical branches.
The company has partnered with major ecommerce and payment platforms like Flipkart, Amazon, Paytm, and PhonePe, enabling seamless loan origination within the ecosystems.
