Finova Capital, a Jaipur-based non-banking financial company, has raised an undisclosed amount of funding in its Series A round from Sequoia India.
The amount raised in the current round will be used by the startup to expand its presence across the country.
Commenting on this funding round, GV Ravi Shankar, Managing Director, Sequoia India Capital Advisors, said,
Finova Capital is addressing a critical need gap in the highly underserved MSME market by making credit available to small businesses with undocumented income through their innovative credit models. Sequoia is delighted to partner with Mohit and his team to build a market leading platform for MSME lending in the country.
Finova was founded in March 2016 by Mohit Sahney. It is a RBI-registered NBFC which provides home and business loans to MSMEs by bringing access to formal credit to their doorsteps. It is focused on tier-II and tier-III cities and rural regions.
The company aims to provide affordable and customer-centered credit to micro, small, and medium enterprises in a time-bound fashion.
With a team of around 50 employees, the startup has established its presence in Rajasthan with five branches across the state. It claims to have disbursed close to Rs 45 crore to over 500 small businesses so far.
Finova is currently said to be working with 10 lenders and is looking to explore further partnerships to expand its lending portfolio. The company is hoping to end the year at 100 crore assets under management (AUM) in its second year of operations. Further, the company also claims to have been profitable from the first year itself.
In this space, Finova Capital is competing against the likes of LendingKart, InCred, LoanFrame, among others. Lendingkart has recently raised Rs 70 crore in equity funding to strengthen its capabilities.