Finova Capital Secures $135 Million in Series E Funding to Boost Loan Book and Technology Investments

Finova Capital Secures $135 Million in Series E Funding to Boost Loan Book and Technology Investments

Finova Capital a non-banking financial company (NBFC) focusing on micro small and medium enterprises (MSMEs) has successfully raised $135 million in a Series E funding round. This financing attracted notable investors including Avataar Venture Partners Sofina Madison India Capital and Norwest Venture Partners who join existing backers such as Peak XV Partners Faering Capital and Maj Invest.

The latest funding round not only strengthens Finova's financial standing but also provides a partial exit for early investors in the company. This comes on the heels of the firm raising $65 million in a Series D funding round in 2022. With the latest investment Finova has now raised a total of $259 million according to data from the market intelligence platform Tracxn.

Finova Capital intends to utilize the newly acquired funds to enhance its loan book invest in technology expand its geographic reach and further its mission of enabling financial inclusion at scale. Currently the company operates in 16 states with more than 400 branches and boasts assets under management (AUM) estimated at ₹3,000 crore.

Mohit Sahney the founder and managing director of Finova expressed enthusiasm about the investment stating that the company is thrilled to have tech-focused global investors showing confidence in their business model. He welcomed new investors Avataar Venture Partners Sofina and Madison India Capital highlighting that they share the company’s vision of promoting financial inclusion.

The firm primarily provides business loans to MSMEs and has demonstrated impressive growth and operational efficiency. Anirudh Singh a partner at Avataar Venture Partners praised the founders Mohit and Sunita along with the entire team for their exceptional execution capabilities. He noted that Finova has developed a technology-driven platform that is highly profitable and has achieved a remarkable growth rate of seven times in the last four years driven by robust underwriting and origination capabilities.

This significant capital infusion will enable Finova Capital to further its commitment to financial inclusion while enhancing its technological infrastructure to better serve the needs of MSMEs across India.