Finova Capital, the NBFC licensed by Reserve Bank of India has raised an undisclosed amount in series-A funding from Sequoia India, a venture capital firm. According to the ETtech, the startup will use the freshly infused fund for expansion plans and build out a technology to smoothen the process of reaching out to rural customers, cut short the documentation process for loans and also for digitization of KYC and documents required for applying for the loan.
Commenting on the development, GV Ravi Shankar, MD, Sequoia Capital India 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.”
Founded in 2015, Finova capital is NBFC focusing on MSME lending. The idea of Finova capital germinated with a belief that, if supported well, then the MSME can play a pivotal role in growing Indian economy.
Being one of the fast growing NBFCs based out of Jaipur, Rajasthan, the company is floated by the ex-senior banker, Mohit Sahney who recently announced its association with Rajiv Sabharwal, as the strategic advisor.
Bringing about financial innovation and transforming credit delivery, The Finova Capital offers flexible ticket size of the loans between a minimum of 2 Lakhs to maximum 20 Lakh, depending on the requirements. Within just a year of its operations, Finova Capital has emerged as one of the most preferred financial services providers amongst MSMEs in India.
In March 2017, Finova Capital shared its target of disbursing loans worth INR 100 Crore in 2017 to the Indian MSME sector. Within the past one year of its launch, the fastidious company has already disbursed loans worth INR 20 Crores to over 220 small scale merchants, with the ticket size of INR 9 Lakh.
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