Indian NBFC Finova Capital raises $55m from Sequoia, Faering, others

Photo: Reuters

Finova Capital, a non-banking financial company, has raised $35 million from Sequoia Capital India and Faering Capital and an additional $20 million from various lenders, it announced on Wednesday.

The Jaipur-based company will use the funds to expand its presence and enable access to credit for the unbanked population, it said in a statement.

Founded in 2016 by Mohit and Sunita Sahney, Finova Capital targets micro-entrepreneurs and semi-skilled professionals who typically do not have or have limited access to capital from formal financing institutions, looking for loans of around Rs3-5 lakhs for a period of up to seven years.

“We have come a long way in the last 4 years, identifying the needs of our target segment and efficiently serving them, while being profitable from the beginning. Our ethos and culture have helped us navigate these tough times smoothly and we continue to remain laser-focused on our vision,” Mohit Sahney, founder and CEO of Finova said.

Finova secured $15 million in a Series B round from Faering Capital and Sequoia in March 2019. Sequoia had first invested in Finova in late 2017. The company has an AUM of approximately Rs. 460 crores and a customer base of about 11,000. It has a presence across Rajasthan, Madhya Pradesh, Uttar Pradesh and Delhi with over 100 branches.

“The current credit gap for MSMEs in India is estimated at $380 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 LLP.

Bangalore based Unitus Capital acted as exclusive financial transaction advisor to Finova, while Vertices Partners and Luthra and Luthra acted as legal advisors to the transaction.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.