Jaipur-based NBFC Finova Capital has raised $135 million in its Series E funding round, supported by new investors such as Avataar Venture Partners, Sofina, and Madison India Capital. Long-time investor Norwest Venture Partners also participated, enabling exits for early backers, including Peak XV Partners, Faering Capital, and Maj Invest. This latest funding follows a $65 million round led by Norwest in 2022, bringing Finova’s total assets under management (AUM) to ₹3,000 crore.
Finova plans to use the new funds to increase its loan book, improve technology infrastructure, and expand geographically. Mohit Sahney, Founder and MD of Finova, expressed enthusiasm about welcoming new investors who support the company’s financial inclusion goals. The firm, co-founded by Mohit and Sunita Sahney in 2015, has witnessed over 60% CAGR in the past five years and currently serves more than 100,000 clients across 16 states.
Avataar Venture Partners’ Anirudh Singh highlighted Finova’s strong presence in MSME financing, noting its impressive sevenfold growth over four years. Finova’s proprietary technology platform provides working capital, machinery, and business loans, making it competitive with other MSME lenders like Kinara Capital and Indifi.
Credit: This article is based on information from sources including Finova Capital, Avataar Venture Partners, and Unitus Capital.
Key Highlights:
- Finova Capital raised $135 million in Series E, led by Avataar Venture Partners and Sofina.
- The funds will support expansion of Finova’s loan book, tech advancements, and geographical growth.
- The company’s AUM stands at ₹3,000 crore, serving MSMEs across 16 states.