Jaipur-based NBFC Finova Capital has secured $135 Mn (INR 1,135.08 Cr) in a Series E funding round from Avataar Venture Partners, Sofina and Madison India Capital, along with existing investor Norwest Venture Partners.

According to the NBFC, the round also gave partial exit to its early backers. It counts Peak XV Partners, Faering Capital and Maj Invest among its investors.

Finova Capital plans to use the fresh capital to grow its loan book, invest in technology and expand footprint.

Founded in 2015 by Mohit Sahney and Sunita Sahney, Finova Capital is an NBFC offering MSME business loans and home loans ranging from INR 3 Lakh to INR 25 Lakh, focused on semi-urban and rural areas.

It claims to have assets under management at INR 3,000 Cr, which represents a 5-year CAGR of more than 60%.

“We are very excited to welcome our new investors – Avataar Venture Partners, Sofina and Madison India Capital, who share our vision of financial inclusion. Along with them, we appreciate the support from our existing investors – Peak XV Partners, Faering Capital, Norwest Venture Partners and Maj Invest. Their belief in our ability to enable financial inclusion across the country and empower entrepreneurs in the heart of Bharat has invigorated our commitment to building one of India’s largest tech-led financial services company,” Sahney said.

The NBFC claimed a consolidated profit after tax of INR 151.5 Cr in FY24, up 71% from INR 88.4 Cr in FY23. Revenue from operations increased 59% to INR 529.3 Cr in FY24 from INR 332.6 Cr in the previous year.

In March 2022, Finova raised $65 Mn, with Norwest Venture Partners investing $45 Mn and Maj Invest and Faering Capital contributing $20 Mn. Earlier in October 2020, it secured INR 260 Cr from Peak XV Partners and Faering Capital.

The funding comes amid increased investor activity in the MSME lending space. In September, FlexiLoans raised INR 290 Cr in Series C funding. Aye Finance secured INR 250 Cr from ABC Impact and British International Investment, while Arthan Finance raised INR 50 Cr in Series B funding from Incofin India Progress Fund.

The Reserve Bank of India plans to launch a Unified Lending Interface platform to offer credit to rural and small businesses, aiming to address unmet credit demand in the agricultural and MSME sectors.

The post NBFC Finova Capital Nets $135 Mn Funding To Expand Loan Book appeared first on The India Bizz Startup News Website.

The post NBFC Finova Capital Nets $135 Mn Funding To Expand Loan Book appeared first on The India Bizz Startup News Website.