Sequoia India Leads $55 Mn Series C Funding in Finova Capital NBFC
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Finova Capital, a non-banking financial company (NBFC), has raised USD 35 million in Series C funding round from Sequoia Capital India and Faering Capital, along with an additional USD20 million from a clutch of other lenders.
The Jaipur-based company was founded in 2016 by Mohit Sahney and Sunita Sahney. Finova Capital extends loans of around INR 3-5 lakh for up to seven years targeted typically towards micro-entrepreneurs and semi-skilled professionals who have limited access to credit from formal financing institutions.
The company claims it currently has INR 460 crore worth of assets under management and 11,000 customers. It added that it has been since its inception.
“We have come a long way in the last four years, identifying the needs of our target segment and efficiently serving them, while being profitable from the beginning,” said founder and CEO Mohit.
The company said it will deploy the funds to expand its presence and enable access to credit for the unbanked population. Finova Capital has 100 branches across Rajasthan, Madhya Pradesh, Uttar Pradesh, and Delhi.
“The current credit gap for MSMEs in India is estimated at USD380 billion. Finova is playing a significant role in bridging this gap to enable and empower these businesses, which are a critical contributor to the Indian GDP and employment,” said Ishaan Mittal, Principal, Sequoia Capital India.
Sequoia Capital has been an early backer of the company, having pumped USD 6 million in Series A round in 2018, followed by Series B funding round of USD 15 million, which also saw participation from Faering Capital.
Commenting on the deal, Aditya Parekh, co-founder and partner, Faering Capital, said “We have been impressed by Finova Capital’s profitable growth, asset quality, and execution over the past 18 months since our original investment, and are excited to continue to back the company in their vision of delivering innovative credit solutions for a large and underserved market.”