Get All Access for $5/mo

MSME Lender Finova Capital Raises $65 Mn Led By Norwest Venture Partners And Maj Invest Finova plans to utilise the funds to further grow its loan book, invest in technology, expand geographically and further its vision of enabling financial inclusion at scale

By Akshit Pushkarna

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Representative Image

MSME lender focused on NBFC, Finova Capital, announces on Thursday that it has raised $65 million in funding from Norwest Venture Partners, Maj Invest and Faering Capital. The key investment was made by Norwest, who led the investment round by committing $45 million investment to the company. The Jaipur-based financial services company is an NBFC licensed by the Reserve bank of India and was founded in 2015 by Mohit Sahney.

Sahney gained a rich experience in the banking industry prior to his entrepreneurial journey, working with ICICI bank for almost 15 years. In his banking experience, Sahney worked in multiple capacities like credit, sales and business in different parts of the country.

Finova Capital provides loans to customer to micro entrepreneurs and semi-skilled professionals who do not have or have a limited access to lending from formal financing institutions. The loans are tailored keeping in mind the needs of its target segment of small service providers, manufacturers and retailers. Completing seven years in business, Finova has been backed by 34 banks, NBFCs and AIFs. Further, the company has expanded into 180 branches spread across 8 states in west, north and central India, developing a customer base of over 20,000 and loan book worth more than INR 1,000 crore, till now. Finova plans to utilise the funds to further grow its loan book, invest in technology, expand geographically and further its vision of enabling financial inclusion at scale.

The company had last raised a fund of $35 million in a Series C round of funding back in 2020. The major investors that backed the company back in 2020 was Sequioa Capital and Faering Capital. The company reaffirms its stake in the highly competitive lending market, where it is pitted against larger players like Lendingkart and Capital Float.

Speaking about how the company is planning to scale its operations with the fresh funding, Mohit Sahney, founder and CEO of Finova, said, "We continue to invest heavily in our tech capabilities and operations to further improve our goal to help realize the dreams of millions of small entrepreneurs over the next decade. Our processes combined with disciplined underwriting has ensured our resilience to the pandemic while keeping the growth and portfolio quality intact and best in class."

Commenting on the VC's investment in Mohit Sahney's Finova Capital, Niren Shah, Managing Director and Head of NVP India, said, "Norwest is very impressed with Mohit's vision of financial inclusion at scale having created a sustainable business model. Finova has demonstrated best-in-class asset quality, having built a solid underwriting framework with the use of tech and data analytics and has built a low cost, diversified liability franchisee in North, West and Central India."

Akshit Pushkarna

Former Features Writer

News and Trends

Multiples Private Equity Leads INR 1000 Cr Funding in Shubham Housing

With the raised funds, the Gurugram-based platform aims to propel its growth trajectory, diversifying its product offerings and strengthening its national footprint.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

News and Trends

Former Cleartrip CEO Ayyappan R Eyes Quick Commerce with FirstClub

After stepping down as Cleartrip's CEO earlier this year, Ayyappan brings his expertise from leading positions at Flipkart, including his role as chief business officer at Myntra.

Growth Strategies

Amazon To Improve Services In Tier II, III Cities: Samir Kumar, Country Manager

The bigger share of our business is coming from Tier II,III and beyond, says Samir Kumar, country manager, Amazon India

Growing a Business

How to Spot Trends and Anticipate Market Shifts Before Your Competition

Discover how to identify disruptive trends before your competitors by mastering the art of anticipating market shifts. Learn strategies for staying ahead and gaining a competitive edge in business.