MSME Lender Finova Capital Raises USD 135M In Series E

Finova Capital, a Jaipur-based non-banking finance company (NBFC) and MSME lender, has raised USD 135 million in Series E funding led by Avataar Venture Partners, Sofina, and Madison India Capital. The funding will support Finova’s plans to expand its loan portfolio and enhance its technological infrastructure. Founded in 2015, Finova specializes in providing financial services to micro-entrepreneurs and semi-skilled professionals who face challenges accessing traditional banking services. The company operates across 16 cities, partnering with over 400 brands and managing assets worth INR 3,000 crore. Finova’s innovative credit assessment approach focuses on borrowers’ cash flow analysis rather than conventional documentation, making it suitable for its target market. This investment marks Avataar Venture Partners’ first foray into India’s financial services sector.