Jaipur-based MSME (micro, small and medium enterprise) focussed NBFC (non-banking financial company),has raised $65 million from Norwest Venture Partners, Maj Invest, and Faering Capital.
The funding, according to a statement, will be used to grow its loan book, invest in technology, expand geographically and further its vision of enabling financial inclusion at scale. Norwest led the round with a $45 million investment.
Bengaluru-based Unitus Capital acted as an exclusive financial transaction advisor to Finova.
Talking about the fundraise, Mohit Sahney, founder and CEO of Finova said, “We are thrilled to have marquee investors like Norwest and Maj show their faith in what we are building at Finova along with existing investors Sequoia and Faering Capital.”
Finova Capital’s customer segments include micro-entrepreneurs and semi-skilled professionals who do not have or have 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.
Founded in 2016 by Mohit and Sunita Sahney, Finova has 180 branches spread across eight states in the west, north, and central India. It claims to have over 20,000 customers and a Rs 1,000 crore loan book.
Niren Shah, Managing Director and Head of NVP India said, “Norwest is delighted to lead a $65M round and partner with Finova Capital in its quest to become one of India’s leading MSME players catering to the 60M+ MSMEs.”
Finova says it has developed an in-house tech stack centered around its customer segment and internal domain expertise, helping the company target unique, untapped customer profiles and leverage its proprietary underwriting and risk assessment processes.
The tech provided by the startup enables on-ground teams to be more productive and helps customers to apply for and repay their loans right from their smartphones. Finova is backed by 34 banks, NBFCs and AIFs.