Finova Capital Raises $135 Million in Funding

Jaipur-based Finova Capital has secured $135 million in a Series E funding round led by Avataar Venture Partners, with participation from Sofina, Madison India Capital, and existing investor Norwest Venture Partners. The funds will be used to expand its loan book, enhance technology, and increase its geographical presence, aiming for 30% annual growth. Founded in 2015, Finova focuses on providing financial services to micro, small, and medium enterprises (MSMEs) that lack formal credit access, boasting a significant portfolio of over 400 brands across 16 cities. The company has achieved a five-year compound annual growth rate (CAGR) of over 60%, with assets under management reaching approximately ₹3,000 crore. Additionally, this funding round offers a partial exit to some early investors, highlighting the growing interest in Finova's technology-driven platform. The firm has facilitated considerable credit to underserved micro-entrepreneurs and aims to maintain its profitability as it scales operations.