Finova Capital raises $135 million to expand loan book, invest in tech

Finova Capital, an NBFC focused on MSMEs, raised $135 million in a Series E funding round from investors including Avataar Venture Partners, Sofina, Madison India Capital, and Norwest Venture Partners. The funds will be used to grow its loan book, invest in technology, and expand geographically. The company aims to enhance financial inclusion at scale. Finova has a presence across 16 states with over 400 branches and assets under management of Rs 3,000 crore. The funding round provides a partial exit for early investors. Finova plans to deploy the funds to further its vision of enabling financial inclusion. The company provides business loans to MSMEs and has demonstrated strong execution capabilities, growing sevenfold in the last four years. The founders, Mohit and Sunita Sahney, have built a technology-driven platform that is highly profitable. The new investors share Finova’s vision of financial inclusion and are excited to support its growth.