Sequoia invests $ 6 million in loan company NBFC Finova Capital

NEW DELHI: Jaipur-based Finova Capital, an NBFC lending to small businesses and service providers in small towns and rural areas, has raised $ 6 million from Sequoia India. The lender will use the funds raised to expand operations, invest in technology and acquire talent. The company had raised Series A from Sequoia India at the end of last year during its first external fundraising.

The boutique investment bank Unitus Capital, specializing in debt and equity investments for impact companies, acted as financial advisor to this transaction. Finova Capital has so far disbursed loans to the tune of Rs 90 crore to more than 1,100 clients. Founded by husband-wife duo Mohit and Sunita Sahney in March 2016, the RBI-registered NBFC claims to be profitable in its first year of operations. The company had built custom underwriting models for borrowers from over 15 different unorganized segments such as tea vendors, fruit and vegetable vendors, carpenters, etc. note size of Rs 7 lakh at an average annual interest rate of 22%.

“We are investing heavily in technology because we believe it is a catalyst for the traditional brick and mortar model and the most efficient way to extend credit to our target segment,” said Mohit Sahney, CEO of Finova Capital .