Finova Capital Secures Funding From Sequoia India In Series A

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.

MSME Lender Finova Capital Names Banking Veteran Rajiv Sabharwal as Its Strategic Advisor

Finova capital, one amongst the fast growing NBFCs based out of Jaipur, Rajasthan and floated by ex-senior banker, Mohit Sahney, announced its association with Mr Rajiv Sabharwal, as the strategic advisor.

Mr Sabharwal, currently partner at the True North Managers LLP (previously, India Value Fund Advisors) and has been part of the banking & finance sector for over 26 years, will be involved in the overall business strategy, growth and development of Finova capital.

“It gives me immense pleasure to welcome Mr. Rajiv Sabharwal as our Strategic Advisor. Rajiv brings a wealth of experience in the banking and financial domain, which is going to be vital for us across a range of sectors, including strategic direction, credit & customer understanding, and the network of relationships in the industry,” Mr Mohit Sahney, MD & CEO of Finova Capital said.

Commenting on association, Mr Rajiv Sabharwal, Strategic Advisor, Finova Capital, said “The team at Finova Capital is addressing perhaps the most pressing needs of the current times – to make credit accessible to an otherwise underserved segment of Indian MSMEs. I wish them all the best for this endeavour.”

Prior to joining True North, Rajiv was an Executive Director on the board of ICICI bank where he was responsible for several businesses including Retail banking, Business banking, Rural/ Financial Inclusion Business, Digital Bank and Technology. He has been a leading figure in the Real Estate/ Housing Finance industry and is credited with growing the housing finance industry and making ICICI Bank the leading home loan provider. He has also been a part of different RBI and IBA committees on Banking.

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. “We at Finova believe that by supporting and creating enabling opportunities for micro & small business, lives can be enriched & communities can be transformed. The company's aim is to reach out to the financially-excluded, unorganized, and unreached MSME sector" added Mohit Sahney.

Finova Capital Plans to Disburse Rs 100 Cr Worth of Loan to Indian MSMEs in 2017

Finova Capital, the NBFC licensed by Reserve Bank of India is committed to making finance available for the Indian MSMEs. In a recent announcement, 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.

Commenting on the announcement, Mr. Mohit Sahney, MD & CEO, Finova Capital said, “The MSME sector in India is a strong contributor to country’s GDP, along with creating employment opportunities. Despite their efforts, the sector often finds it challenging to access the traditional financial services, due to various factors, including lack of documentation, tedious paperwork and others. At Finova Capital, it is our endeavor to reach out to the financially excluded and unorganized MSME sector, making finance available at reasonable costs with flexible tenures and transparent processes, enabling their growth and expansion.”

The target loan will be disbursed by Finova Capital among small business owners, with primary focus on electricians, plumbers, carpenters, hairdressers, tea stallers, food kiosk owners, etc.

Sharing his opinions on the services provided by Finova Capital, Mahavir Prasad Parate, a Tea vendor from Lal Kothi in Jaipur said, “Today, I earn INR 40,000 per month. But, this wasn’t always the case. As a tea vendor in a small town, not many banks were willing to lend me money for growing my business. Those that did offer came with lots of paper work and formalities, which was impossible for me to deal with. Finally, I approached Finova Capital, where they provided easy loan facilities. I took a loan of INR 6.67 Lakh for a comfortable tenure of 7 years. Their ease of operations and support made it easier for me to scale-up my business.”

Adding to the same thought, Narayan Singh Negi, a Paan-vendor from Jaipur, cites, “Finova Capital has made it easier for me to manage and scale my humble business. While most banks were willing to offer me a loan, I realized that the terms for repaying the same within 2-3 years with high EMIs could become immensely difficult for me in the long run. Finally, I found out about Finova Capital and the long reimbursement tenures they offer. I availed a small business loan worth INR 6.40 Lakh for 7 years with EMIs at half the prices. It is certainly the best decision I ever made.”

Bringing about financial innovation and transforming credit delivery, 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.