Finova Capital Secures USD 135 Mn in Series E Funding to Expand MSME Financing The newly secured capital will be directed toward expanding Finova's loan book, investing in technology, and enhancing its geographic footprint.
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Jaipur-based Finova Capital, a Non-Banking Financial Company (NBFC) focused on MSMEs, has raised USD 135 million in its Series E funding round. This substantial round saw participation from new investors, including Avataar Venture Partners, Sofina, and Madison India Capital, along with returning investor Norwest Venture Partners.
The financing also facilitated exits for some of Finova's early backers, who include Peak XV Partners, Faering Capital, and Maj Invest. Finova had previously raised USD 65 million in a round led by Norwest in 2022.
Founded in 2015 by Mohit Sahney and Sunita Sahney, Finova Capital is committed to empowering micro-entrepreneurs and semi-skilled professionals by providing accessible financial solutions. The company, with an AUM (Assets Under Management) of INR 3,000 crore, has achieved a remarkable five-year CAGR of over 60%.
Currently operational in 16 states, Finova serves more than 100,000 customers, offering working capital loans, machinery loans, and business loans to support the growth of India's MSME sector.
The newly secured capital will be directed toward expanding Finova's loan book, investing in technology, and enhancing its geographic footprint. "We are excited to welcome our new investors, who share our vision for financial inclusion, and are grateful for the continued support from our existing partners," said Mohit Sahney, Founder and MD of Finova Capital.
Anirudh Singh, Partner at Avataar Venture Partners, emphasised the firm's confidence in Finova, noting it as Avataar's first foray into financial services. "Finova has established itself as a market leader in MSME financing across North, Central, and West India," he stated, adding that Finova has scaled its business sevenfold in just four years.
Finova competes with other venture-backed MSME-focused NBFCs, including Kinara Capital and Indifi. Bengaluru-based Unitus Capital acted as the exclusive transaction advisor for Finova in this latest round.
