India: Sequoia-backed Finova raises $15m from Faering Capital, others

Photo: Mint

Indian non-banking financial company Finova Capital has raised $15 million from home-grown private equity firm Faering Capital and existing investor Sequoia India.

According to an official statement, the Jaipur-based firm plans to use the capital raised in its Series B round to expand its presence and enable access to credit for the unbanked population.

The financial services firm currently has 52 branches across Rajasthan, and it now plans to expand its operations to over 75 branches across Rajasthan, Delhi and Madhya Pradesh by the end of the current calendar year.

Bangalore-based Unitus Capital acted as exclusive financial transaction advisor to Finova, while Vertices Partners, Trilegal and Themis Associates acted as legal advisors.

Launched in 2016, Finova Capital aims to serve what it calls the ‘missing middle’ of the MSME segment — small businesses and services in small town and rural India who are looking for mid-ticket loans of Rs 8-9 lakh for a period of up to seven years.

It claims to have disbursed loans worth over Rs 250 crore to over 4,500 customers to date.

“We are at an important juncture as we continue to find innovative ways to provide the unbanked population access to business loans – doing so as one of the few players in the running a profitable operation from inception,” said Mohit Sahney, founder and CEO of Finova.

In 2016, the company had raised an undisclosed amount of funding in its Series A round from Sequoia.

The financing for Finova marks the fifth investment by mid-market private equity Faering Capital from its second fund. Other investments from the fund include WheelsEMI, Utkarsh Small Finance Bank, Prataap Snacks and Bookmyforex.

Also Read:

Finova secures Series A from Sequoia

Auto finance firm WheelsEMI raises $14m Series B round led by Faering Capital

 

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. 
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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.