Sequoia India invests $6M in NBFC lending firm Finova Capital

NBFC lending company Finova Capital has raised $6 million from Sequoia India. The firm will use the funds to expand its presence across the country, investing in technology and talent acquisition. The news was first reported by Economic Times.

Mohit Sahney, the CEO, Finova Capital, said, "We are investing significantly in technology as we believe it is an enabler to the traditional brick and mortar model, and the most efficient way to deliver credit to our target segment."

The Jaipur-based Finova Capital was founded in March 2016 by Mohit Sahney and Sunita Sahney. It provides home and business loans to MSMEs by bringing access to formal credit to their doorsteps. Finova Capital aims to provide affordable and customer-centred credit to micro, small, and medium enterprises in a time-bound fashion.

GV Ravi Shankar, Managing Director, Sequoia Capital 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 claims to have disbursed close to Rs 90 crore to over 1,100 customers till date. With a team of 50 employees, the venture has five branches across Rajasthan.

Boutique investment bank Unitus Capital which specialises in debt and equity investments for impact enterprises was the financial advisor for this transaction.