FlexiLoans.com, as the name itself represents its work. It is a digital lending platform providing quick, secure, translucent funding to small SMEs, start-ups and aims to endow funds to the low-budget deserving millions of small business to expand its reach. Its prime goal is to accommodate the need of the financial obligation of SME’s who were unable to avail loan from banks and other financial institutions.
FlexiLoans.com is a Mumbai based company. It was founded by the four Indian School of Business (ISB) alumni (2008-09) Deepak Jain, Abhishek Kothari, Manish Lunia and Ritesh Jain, in the year 2015 November but incorporated in 2016. It is all initiated with a zeal to ensure the working predicament reform for others towards their working stature. Being some of them are from the entrepreneurial background, business runs in their vein, which they used very wisely and collectively on a single platform.
How did FlexiLoans.com get the Idea:
The idea of FlexiLoans.com derived when some of them met with a friend who was seeking for financial aid for her business, to expand its own supplier based business distinct from her father’s business. But 80% of SMEs loan proposals are rejected by financial institutions due to lack of supportive documents. FIs and Banks demand financial history, collateral securities, three years ITR returns and a good credit score. The person lacking to attach the supportive documents to the banks were simply rejected for loan approval. Another defiance for the banks and financial institutions are the size of the loan, scanty amount of loan didn’t fascinate Banks and FIs to work upon.
“However, the opportunity we saw in creating something very big in SME lending made our decisions easier,” says Deepak Jain.
After a long contemplation, they emerged with an outcome that they grant her the required amount of loan on the basis of her past 12 months financial record. Furthermore, her educational qualifications and her network on social media would help them to make the deal more accurate and valid.
After the incidence, they researched at a various level to know the small entrepreneurs and their conditions towards the financial affair. Their aim is to make ‘social and alternative scoring’ of SMEs and individuals a big opportunity for the economy that will far out place the limited insights that financial bureau provide. The rapid and universal extension of digitization in India, currently, banking transformation of the country is standing on the ledge which will help FlexiLoans.com in providing aids to the widely untapped and underserved demand.
“The SME segment is credit-starved and hence, to get adequate funds, they turn to informal sources of credit,” says Deepak Jain.
The whole process of FlexiLoans.com is completely online, with zero physical paperwork and seamless processing and disbursal within 48 hours. FlexiLoans.com makes loan ease to dispense to its customers by practising the model of credit scoring. FlexiLoans technology- using the online marketplace to meet its financial requirements of SMEs, who were unable to assist loans from the banks and financial institutions and do not have the credit history.
FlexiLoans.com- A Startup to Watch:
FlexiLoans.com is in partnership with more than 40 regional and national platforms like Flipkart, Amazon, ShopClues, Snapdeal, PineLabs, OYO, Uber, Jabong, FirstData and more to elongate its loans reach and lines of credit to the vendors listed/associated with these platforms to reach out its customer. It also reaches to the customer directly from its sites.
FlexiLoans.com has been listed in the list of ‘Top 100 Startups to Watch in India, 2017’ published by a premier executive search firm in India, SutraHR. In May 2017, CreditPeriod was takeover by FlexiLoans.com. CreditPeriod is a supply chain financing platform, a Mumbai based company.
FlexiLoans.com raised about $15 million (INR 100 crore) from industry veterans Sanjay Nayar, CEO, KKR; Vikram Sud, the former head of ops and technology at Citibank Asia Pacific; Anil Jaggia, Chief Information Officer, HDFC Bank, and Narayan Seshadri, ex-MD of KPMG’s advisory business. It was the highest raised capital in the first round by any Indian startup till date.
FlexiLoans.com: Providing loans as low as INR10K:
In India, a big part of the market is working on commission charge around 29 million small industries and SMEs giving 45% to the country’s industrial amount and to export is 40%. Borrowing is an immense area to seek out, still where’s such a huge market is uncustomed.
FlexiLoans.com developed a locomotive loan business, which is able to provide loans within 24 hours and totally differ from the traditional method of credit scoring used by the banks and financial institutions. Other startups working in the same directions are KountMoney, Faircent.com, LoanCircle, Capzest, Capital Float, Neogrowth, Lendingkart, etc. All are serving in a similar platform to make entrepreneur experience much better for small industries SMEs.
The platform uses several conventional and non-conventional sources of analogy data to score an applicant, which means that each applicant’s score is unique in keeping with the loan amount and profile of the applicant. Since its inception, thousands of loans have been sanctioned in between amount of Rs. 2 lakh and Rs. 4 lakh to the small entrepreneurs and several loans distributed to those who do not have proper credit scoring and the amount of loan is very nominal, like minimum to 10k or less.
FlexiLoans.com- Showing Success to Thousands of Entrepreneurs
FlexiLoans.com is a ray of hope in a country like India, where around 56% of the SMEs are facing working capital problems because of unavailability of loans and faces a lot of hassle in the approval of credit from the bank and after that, late payment. FlexiLoans.com improved the situations of credit facilitating and enhance it a much better than before for such small entrepreneurs.
In upcoming years FlexiLoans.com wants to be developed as a data science and machine learning enabled lending company with an intense access over tier-1 and tier-2 cities. FlexiLoans.com target is to associate with B2B2B platforms and corporates to reach their customers easily.