Jaipur-based Finova Capital, a leading MSME-focused NBFC, has successfully raised $135 million in a Series E funding round. This latest funding round attracted new investors, including Avataar Venture Partners, Sofina, and Madison India Capital, alongside returning investor Norwest Venture Partners. With this round, early investors were given an exit opportunity, as confirmed in a company statement. Finova’s previous funding milestone was a $65 million raise in 2022, led by Norwest.
The fresh capital will empower Finova Capital to scale its loan portfolio, invest in advanced technology, and expand its geographical reach. Currently, the company manages assets worth Rs 3,000 crore, with a robust five-year compound annual growth rate (CAGR) exceeding 60%. Established in 2015 by founders Mohit Sahney and Sunita Sahney, Finova Capital operates across 16 states and serves over 100,000 customers, providing essential financial services such as working capital, machinery, and business loans to MSMEs.
The company’s digital platform is designed to bring credit access to micro-entrepreneurs and semi-skilled professionals, supported by proprietary underwriting and risk-assessment technology that targets underserved customer segments. “We are thrilled to bring onboard new partners like Avataar Venture Partners, Sofina, and Madison India Capital, who share our vision for financial inclusion. We also thank our existing investors—Peak XV Partners, Faering Capital, Norwest, and Maj Invest—for their continued support,” stated Mohit Sahney, Founder and MD of Finova Capital.
Reflecting on Avataar Venture Partners’ commitment to the venture, Partner Anirudh Singh expressed excitement about their first investment in the financial services sector, highlighting Finova’s rapid growth, which has surged 7X in the last four years. Competing in the MSME lending market, Finova faces players like Kinara Capital and Indifi. Bengaluru-based Unitus Capital served as the exclusive financial advisor for Finova’s latest funding round.