Jaipur, 28th October 2020: Jaipur based Finova Capital , a Non-Banking Financial Company, has
raised $35 million from Sequoia Capital India and Faering Capital and additional $20 mn from various
lenders. Finova will use the funds to expand its presence and enable access to credit for the unbanked
Finova Capital targets micro entrepreneurs and semi-skilled professionals who typically do not have or
have limited access to lending from formal financing institutions, looking for loans of around INR 3-5 lakhs
for a period of up to seven years. The loans are provided at flexible terms and designed keeping the end
customer in mind.
Finova, which was founded in 2016 by Mohit & Sunita Sahney, has AUM of approx. Rs. 460 crores with
approx. 11,000 customers. It is one of the fastest early stage NBFCs to get BBB+ rating. With presence
across Rajasthan, Madhya Pradesh, Uttar Pradesh and Delhi and over 100 branches, Finova is expanding
contagiously to neighboring regions, utilizing and building on its internal domain knowledge.
Finova targets unique, untapped customer profiles and uses templatized assessment models for highly
scalable underwriting models to help process efficiencies and standardization across geographies. Finova
has also brought in significant tech capabilities to bring efficiency to its operations and enable further
expansion and faster turnaround times.
Talking about the fund raise, Mohit Sahney, founder and CEO of Finova said, “We are excited to have
Sequoia Capital India and Faering repose their faith in Finova and its vision to improve access to credit
for the underserved population. We continue to see very strong support from lenders even in these
difficult times. 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.”
“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. “The founders
have always focussed on building a very strong foundation before scaling the business. The value of that
strategy is evident as Finova has continued to demonstrate strong performance in these tough times.
The Sequoia India team is proud to have been early and long term partners of Finova Capital.”
“We have been impressed by Finova Capital’s profitable growth, asset quality, and execution over the
past 18 months since our original investment and are excited to continue to back the company in their
vision of delivering innovative credit solutions for a large and underserved market ” said Aditya Parekh,
Co-founder and Partner, Faering Capital.
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.