Flyhi-Fineoteric Alliance Targets $20B Education Credit Gap

Flyhi Finance, an RBI-regulated NBFC focused on education and retail credit, has formed an equity-linked partnership with Fineoteric Consulting, a national distributor handling over ₹2,000 crore in annual disbursements. The collaboration aims to build an integrated origination and credit platform targeting school fees, coaching institutes, vocational training, and small business loans—segments where traditional banks remain cautious due to risk profiles and documentation challenges.

India's learning economy is projected to hit USD 225 billion by 2025, yet a USD 20–25 billion credit gap persists across K-12, skill development, and micro-enterprise financing. Flyhi brings the regulated balance sheet, underwriting discipline, and compliance systems, while Fineoteric provides high-velocity sourcing through its nationwide network.

Bridging Aspiration And Access In Underserved Segments

For families paying school fees or coaching tuition, and small entrepreneurs seeking working capital, credit access often stalls on paperwork, collateral demands, or opaque pricing. The partnership enables structured co-lending, Priority Sector Lending (PSL) deployment in education, term loans, and FLDG/DLG-backed originations—tools institutional partners increasingly seek from specialised NBFCs.

Brijesh Parnami, Founder & CEO, Flyhi Finance, frames the timing as critical: "India’s credit requirements are evolving faster than formal supply, especially in education and small-business lending. This partnership blends Flyhi’s NBFC platform with Fineoteric’s deep distribution strength, enabling us to scale responsibly across secured, unsecured and PSL education segments with strong governance and underwriting discipline."

Distribution Muscle Meets Regulated Balance Sheet

Fineoteric's sourcing footprint covers both secured and unsecured products, giving Flyhi access to borrowers beyond metro lending hubs. Sarvang Desai, Executive Partner representing Flyhi Finance, highlights the complementary strengths: "Fineoteric has built a deep and reliable sourcing footprint across both secured and unsecured credit. With Flyhi as a strong balance-sheet partner, we are now positioned to unlock high-quality opportunities in co-lending, PSL-aligned education finance, and structured partnerships for banks, NBFCs and institutional investors."

The model positions Flyhi to deliver tech-led credit infrastructure that meets banks' governance demands while serving end-customers who need quick approvals and transparent terms. In education lending—where repayment cycles tie to academic calendars and seasonal cash flows—the combination could accelerate disbursements without compromising portfolio quality.

Navigating Regulation In A Shifting Credit Landscape

The alliance arrives amid heightened RBI scrutiny on lending practices, risk frameworks, and governance. Flyhi's NBFC status ensures compliance with capital adequacy and exposure norms, while Fineoteric's distribution scale provides origination volume. Together, they create a pipeline for co-lending programs where banks fund the loans but leverage Flyhi's domain expertise in education and retail.

For India's broader credit ecosystem, the partnership reflects a structural shift: specialised NBFCs handling niche origination, paired with distributors who understand local borrower realities, feeding into institutional capital pools. If executed well, it could close part of the USD 20–25 billion gap where formal finance has historically underperformed, particularly in skill-based education and micro-SMB segments.

The focus on PSL-eligible education finance also aligns with government priorities around skilling and workforce development, potentially unlocking additional policy support and funding conduits as the ecosystem matures.