FlexiLoans to disburse ₹100 crore supporting women-led MSMEs

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FlexiLoans, a leading MSME-focused non-banking financial company (NBFC), has announced its plan to disburse over Rs 100 crore in loans to support women-led micro, small, and medium enterprises (MSMEs) in 2025. This initiative aligns with the company’s commitment to empowering women entrepreneurs and bridging the financial gap for female-led businesses. According to a McKinsey report, Indian women-owned businesses could contribute over $280 billion to the GDP by 2025 if provided with adequate financial support. FlexiLoans aims to address this gap by offering collateral-free business loans with minimal documentation, ensuring easy access to funding for women entrepreneurs.

With over 8 million women-led MSMEs in India, the demand for accessible financial solutions is growing. The firm has witnessed a 2.3x increase in its annual women borrowers in the past five years, with nearly 70% of them coming from Tier 2 and Tier 3 cities. Government schemes like the Stand-Up India Scheme and MUDRA Yojana have played a crucial role in promoting financial confidence among women. FlexiLoans has already disbursed over Rs 9,000 crore in loans across 1,500 cities using digital lending technology and alternative data sources. The company aims to simplify the lending process further and encourage more women entrepreneurs to scale their businesses, thereby contributing to India’s economic growth.

1. Understanding FlexiLoans: Business Model, Revenue Streams, and Services

1.1 Business Model

FlexiLoans operates as a digital-first non-banking financial company (NBFC) catering to MSMEs across India. The company specializes in unsecured loans, leveraging technology to provide fast, paperless lending solutions. By using AI and machine learning-driven credit assessment models, FlexiLoans evaluates borrowers based on alternative data sources such as digital transactions, e-commerce sales, and bank statements.

1.2 Revenue Model

FlexiLoans generates revenue through interest income on disbursed loans, processing fees, and technology-driven lending solutions. The company collaborates with financial institutions, marketplaces, and fintech firms to extend its lending capabilities.

1.3 Founders and Funding

Founded by Ritesh Jain, Deepak Jain, Abhishek Kothari, and Manish Lunia in 2016, FlexiLoans has received funding from prominent investors, including Sanjay Nayar (former CEO of KKR India) and venture capital firms. The company has secured multiple funding rounds to expand its digital lending operations.

1.4 Services and Products

FlexiLoans offers various financial products, including:

• Collateral-free business loans
• Term loans
• Working capital loans
• Merchant cash advances
• Invoice financing solutions

2. Women-Led MSMEs in India: Growth and Financial Challenges

2.1 The Rising Number of Women Entrepreneurs

India has over 8 million women-led MSMEs, contributing significantly to employment and economic growth. However, these businesses often struggle with limited access to credit, impacting their ability to expand operations.

2.2 Challenges Faced by Women Entrepreneurs

Women entrepreneurs receive only 10% of formal credit due to restrictive lending policies, lack of collateral, and financial literacy barriers. FlexiLoans aims to close this gap by providing collateral-free, digital lending solutions tailored to women business owners.

2.3 Financial Trends and Increasing Loan Demand

The demand for business loans among women has increased by 81% over the past five years. The average loan amount requested by women entrepreneurs has grown from Rs 4.04 lakh in 2019 to Rs 7.31 lakh in 2024. FlexiLoans attributes this growth to government-backed schemes and rising digital financial inclusion.

3. FlexiLoans’ Commitment to Empowering Women Entrepreneurs

3.1 Bridging the Credit Gap

FlexiLoans has seen a 2.3x increase in annual women borrowers, with nearly 70% coming from non-metro cities. The company’s easy loan application process and digital lending model make it easier for women entrepreneurs to access funds without complex documentation.

3.2 Sectors Benefiting from Women Entrepreneurs

FlexiLoans has observed increasing loan demand from women-led businesses in sectors such as:

• Readymade garments
• FMCG products
• Medical stores
• Electrical goods and fittings
• Cosmetics

3.3 Government Support and Financial Inclusion

Government initiatives like Stand-Up India and MUDRA Yojana have played a significant role in encouraging women-led businesses. These programs provide financial backing and motivate women entrepreneurs to seek credit opportunities.

3.4 Digital Lending and Quick Loan Approvals

FlexiLoans’ digital lending technology ensures loan approvals within 48 hours. The company uses alternative data sources, including e-commerce and digital payments, to assess creditworthiness efficiently.

4. Learning for Startups and Entrepreneurs

4.1 The Power of Financial Inclusion

Startups should focus on inclusive growth by addressing credit gaps for underrepresented business segments.

4.2 Leveraging Digital Lending Technology

Entrepreneurs can benefit from AI-driven credit assessment models to secure funding quickly.

4.3 Government Schemes as Growth Enablers

Utilizing schemes like Stand-Up India and MUDRA Yojana can significantly improve access to finance for women entrepreneurs.

4.4 The Role of Fintech in MSME Growth

Startups in the fintech space can play a crucial role in bridging credit accessibility gaps through innovative financial solutions.

5. The Startups News: Bringing Startup Success Stories to You

When it comes to tracking the latest trends in startup funding, financial inclusion, and digital lending, The Startups News provides in-depth insights. Our platform is dedicated to covering real-time startup stories, funding news, and entrepreneurial strategies to help aspiring business owners stay ahead. Whether you are a startup founder looking for inspiration or an investor tracking India’s growing business ecosystem, The Startups News delivers the latest updates on innovation and success stories from across the country.