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NBFC Finova Capital Nets $135 Mn Funding To Expand Loan Book
Finova Capital Closes Record-Breaking $135M Funding To Accelerate Growth
Mumbai, November 28, 2023
Finova Capital, India's leading non-banking financial company (NBFC), has announced the successful closure of a significant $135 million funding round. The round was led by global investment firm Kora Management and included participation from existing investors Temasek, Elevation Capital, and Faering Capital.
This latest funding infusion brings Finova Capital's total capital raised to over $400 million since its inception in 2018. The company will use the fresh capital to expand its loan book, enhance its technology platform, and grow its team. Finova Capital aims to disburse $1 billion in loans by the end of FY24, a significant increase from the $600 million disbursed in FY23.
Founded by Mohit Oberoi and Akash Bhansingh, Finova Capital provides small-ticket, secured business loans to micro, small, and medium enterprises (MSMEs) in India. The company has a strong presence in over 1,000 cities and towns across the country and has disbursed over $2 billion in loans to date.
“We are excited to close this funding round with the support of such a prestigious group of investors,” said Mohit Oberoi, Co-Founder and CEO of Finova Capital. “This funding will enable us to accelerate our growth plans and continue to provide much-needed financing to MSMEs in India.”
The MSME sector is the backbone of the Indian economy, contributing over 30% to the country's GDP and employing over 110 million people. However, MSMEs often face challenges in accessing formal credit from traditional financial institutions.
Finova Capital addresses this challenge by providing quick and affordable loans to MSMEs through its proprietary technology platform. The company's data-driven approach and deep understanding of the MSME sector enable it to underwrite loans quickly and efficiently.
“We are impressed by Finova Capital's strong track record and commitment to financial inclusion,” said Gaurav Chakravorty, Managing Director at Kora Management. “We believe that the company has the potential to become a leading player in the MSME lending space in India.”
The funding round is a testament to Finova Capital's strong financial performance and growth potential. The company has been profitable since its inception and has consistently exceeded its growth targets.
“We are confident that Finova Capital will continue to grow rapidly in the years to come,” said Akshay Tandon, Managing Director at Elevation Capital. “The company has a strong team, a scalable business model, and a large addressable market.”
Finova Capital is well-positioned to capitalize on the growth opportunities in the MSME lending space in India. The company's strong financial performance, experienced management team, and innovative technology platform make it a formidable competitor in the market.