FlexiLoans.com, a brand owned by NBFC Epimoney Pvt Ltd, boasts of being a market leader in ecosystem-based digital lending for small businesses in India. ‘Loans at a click’ is the vision with which the founders had embarked upon this journey.
The reasons for that are easy to determine. The excessive requirements of documentation, asset security and other paperwork act as a major roadblock to MSMEs in the country. By digitising the entire process and creating flexible lending products, FlexiLoans.com aims to solve this very problem at its core. It offers SMEs a lending solution which focuses on the three key aspects of technology, products and partnerships. With a CAGR of 543.93%, Epimoney is the third fastest growing company in India at the ETRise Top MSMEs Ranking awards.
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“Being a digital lender, we can reach the farthest corners of the country, provide loans as small as Rs 50,000 ($700), use surrogate data science led credit underwriting and disburse loans within 48 hours of loan application,” says Manish Lunia, co-founder, FlexiLoans.com.
As of December 2019, FlexiLoans.com has disbursed loans in over 1,400 plus cities and towns with a branchless presence, and their average loan ticket size is Rs 275,000 of over 30,000 MSME loans.
Besides this, the company has devised a proprietary score called ‘True Score,’ which assesses surrogate data of the business and helps in lending to MSMEs. “Lack of a credit/bureau score is another major problem for MSMEs. About 48% of our borrowers are approved by ‘True Score’, but rejected by banks because of insufficient bureau history,” adds Lunia.
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Though the lockdown affected the businesses of their customers in a multitude of ways, the company is of the view that this storm will pass. Lunia says, since a lot of FlexiLoans customers serve essential services like kirana stores and pharmacies, their repayments are unlikely to be impacted.
Post the unlock phases, their e-commerce customers have re-started selling and are finding good traction. “We are getting leads from our ecommerce partners Flipkart & Amazon for lending to their sellers. About 35-40% of our AUM depends on ecommerce players and we have restarted lending in this vertical,” he highlights.
The company is in advanced discussions with a few PE/VC investors for equity infusion. “In the post-Covid world, we intend to grow via the off-balance sheet/co-lending route, which is an asset-light and more sustainable growth model,” he reveals.
And though technology and data led lending is still very nascent to India, the company is of the view that it will do the same thing to credit penetration that microfinance did a decade ago.
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