Finova Capital raises $135 million to expand loan book, invest in tech

The firm has a presence across 16 states with over 400 branches. Its current assets under management are pegged at Rs 3,000 crore

Finova Capital, a micro, small, and medium enterprise (MSME) non-banking financial company (NBFC), has raised $135 million in a Series E funding round from investors including Avataar Venture Partners, Sofina, Madison India Capital, and Norwest Venture Partners.

 

The investors join the cap table alongside existing investors Peak XV Partners, Faering Capital, and Maj Invest.

 

The deal provides a partial exit for early investors in the firm, the Jaipur-based company said.

 

Finova raised $65 million in a Series D funding round in 2022.

 

The company has raised $259 million to date, according to data from market intelligence platform Tracxn.

 

 

Finova plans to deploy the funds to grow its loan book, invest in technology, expand geographically, and further its vision of enabling financial inclusion at scale, it said.

 

The firm has a presence across 16 states with over 400 branches. Its current assets under management (AUM) are pegged at Rs 3,000 crore.

 

“We are thrilled to have tech-focused global investors show their faith in what we are building at Finova. We are very excited to welcome our new investors—Avataar Venture Partners, Sofina, and Madison India Capital—who share our vision of financial inclusion,” said Mohit Sahney, founder and managing director, Finova.

 

The company provides business loans to MSMEs.

 

“The founders—Mohit and Sunita—and the entire team have demonstrated tremendous execution capabilities to build a technology-driven platform that is highly profitable and has grown 7x in the last four years, driven by strong underwriting and origination capabilities,” said Anirudh Singh, partner at Avataar Venture Partners.