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.