SUMMARY
- Finova Capital raised $135 million in a Series E funding round with participation from new and returning investors.
- The company aims to grow its loan book and invest in technology to enhance geographic presence.
- Founded in 2015, Finova serves over 100,000 customers across 16 states, providing loans to micro-entrepreneurs and semi-skilled professionals.
Jaipur-based Finova Capital, a non-banking financial company (NBFC) focused on micro, small, and medium enterprises (MSMEs), has successfully raised $135 million in a Series E funding round. The latest investment round saw participation from new investors including Avataar Venture Partners, Sofina, and Madison India Capital, along with returning investor Norwest Venture Partners.
In a statement, Finova Capital announced that the round provided exits for early investors, including Peak XV Partners, Faering Capital, and Maj Invest. This funding comes on the heels of a previous $65 million round led by Norwest in 2022.
Finova Capital plans to utilize the newly acquired capital to expand its loan book, invest in technology, and enhance its geographic reach. Currently, the company boasts assets under management (AUM) of ₹3,000 crore, reflecting a five-year compound annual growth rate (CAGR) of over 60%.
Founded in 2015 by Mohit Sahney and Sunita Sahney, Finova operates across 16 states and serves over 100,000 customers. The company provides a range of financial products, including working capital loans, machinery loans, and business loans, primarily targeting micro-entrepreneurs and semi-skilled professionals through its technology-driven platform.
“We are very excited to welcome our new investors—Avataar Venture Partners, Sofina, and Madison India Capital, who share our vision of financial inclusion. We also appreciate the continued support from our existing investors—Peak XV Partners, Faering Capital, Norwest Venture Partners, and Maj Invest,” stated Mohit Sahney, Founder and Managing Director of Finova Capital.
Finova Capital has developed a proprietary underwriting and risk-assessment technology solution aimed at reaching untapped customer profiles. Anirudh Singh, Partner at Avataar Venture Partners, remarked, “As Avataar’s first investment in the financial services sector, we are delighted to be partnering with Finova, which is a market leader in MSME financing across North, Central, and West India.” He added that the company has experienced a remarkable 7X growth over the past four years.
Finova competes with other prominent players in the MSME lending space, such as Kinara Capital and Indifi. Bengaluru-based Unitus Capital acted as the exclusive financial transaction advisor for Finova during this funding round.
