<article>Venture capital major <a href="http://dealstreetasia.com/tag/sequoia-india" target="_blank" rel="noopener">Sequoia India</a> has invested $6 million in Jaipur-based non-banking finance company<a href="http://dealstreetasia.com/tag/finova-capital" target="_blank" rel="noopener"> Finova Capital</a> in a transaction that is spread across two tranches.</article>

Venture capital major <a href="http://dealstreetasia.com/tag/sequoia-india" target="_blank" rel="noopener">Sequoia India</a> has invested $6 million in Jaipur-based non-banking finance company<a href="http://dealstreetasia.com/tag/finova-capital" target="_blank" rel="noopener"> Finova Capital</a> in a transaction that is spread across two tranches.
Sequoia had first invested an undisclosed amount in Finova&#8217;s Series A round in late 2017.
The lender, which caters to small businesses and service providers in tier 2 towns and rural areas, plans to use the funding for expansion, investment in technology and talent acquisition, according to an official statement.
Launched in 2016, the company claims to have disbursed around Rs 590 crore to over 1100 small businesses till date.
&#8220;There is dearth of organized credit available to a large proportion of MSME businesses largely due to lack of formal income, documentation and financial literacy. We have formulated a way to efficiently serve this under banked population and are working towards facilitating their access to credit,&#8221; said Mohit Sahney, Founder and CEO, Finova Capital.
&#8220;We are investing significantly in technology as we believe it is an enabler to the traditional brick and mortar model, and the most efficient way to deliver credit to our target segment,&#8221; he added.
<a href="http://dealstreetasia.com/tag/unitus-capital" target="_blank" rel="noopener">Unitus Capital</a> acted as an exclusive financial advisor for the transaction.
NBFCs are emerging as an attractive bet for investors, given the large potential in India. Recently, another NBFC Aye Finance raised Rs 25 crore (around $4 million) through a securitization deal from Hinduja Leyland Finance and Intellegrow. Prior to that, SME lending platform Lendingkart Technologies Private Limited has raised over $87 million in equity funding.
&#8220;There is a huge scope for a unique model like that of Finova to grow multi-fold, along with the entire community it services. With this fresh infusion of capital, Finova will be able to deepen its presence and continue on its strong growth trajectory,&#8221; said Abhijit Ray, Co-Founder and Director of Unitus Capital.
&#8220;They have scaled fast while maintaining high portfolio quality and delivered profits. This has encouraged Sequoia to double down on its investment in Finova and support its next leg of growth,&#8221; added GV Ravi Shankar, Managing Director, Sequoia India Capital Advisors.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/india-digest-tata-sons-ups-stake-in-group-companies-sequoia-invests-in-finova-capital-82216/" target="_blank" rel="noopener">Finova secures Series A from Sequoia</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/67454-67454/" target="_blank" rel="noopener">Finova Capital commits $15m loans to Indian MSMEs</a>

Venture capital major Sequoia India has invested $6 million in Jaipur-based non-banking finance company Finova Capital spread across two tranches.

Sequoia India invests $6m in NBFC Finova Capital

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Sequoia India invests $6m in NBFC Finova Capital

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief